We report the creation of nematic nanotube gels containing large domains of isolated, oriented, half-micron-long, single-wall carbon nanotubes (SWNTs). We make them by homogeneously dispersing surfactant coated SWNTs at low concentration in an N-isopropyl acrylamide gel and then inducing a volume-compression transition. These gels exhibit hallmark properties of a nematic: birefrigence, anisotropy in optical absorption, and disclination defects. We also investigate the isotropic-to-nematic transition of these gels, and we describe the physical properties of their ensuing nematic state, including a novel buckling of sample walls. Finally, we provide a simple model to explain our observations.