We present early results of our Chandra study of transient X-ray binaries (XRB) in IC 10, the youngest and most active starburst galaxy in the local universe. X-ray binaries containing black-holes and neutron stars are the relics of the most massive, short-lived stars, and are highly visible tracers of star formation. Visible at intergalactic distances, XRBs efficiently provide fundamental astrophysical parameters (e.g. orbital periods, spin, mass, mass-transfer rate, age, magnetic field) that are unobtainable at other wavelengths. The star-forming dwarf galaxies of the local group (in particular IC 10 and the Magellanic Clouds), offer perfect laboratories to study complete populations of X-ray binaries segregated by age and metallicity. We are using Chandra to detect X-ray transients and monitor out-bursting XRBs in IC 10 with a series of `whole-galaxy’ monitoring observations. Deep Gemini optical images are used to localize X-ray sources with H-alpha emission-line counterparts.