Modern uses

Large scale ship canals such as the Panama Canal and Suez Canal continue to operate for cargo transportation; as do European barge canals. Due to globalization, they are becoming increasingly important, resulting in expansion projects such as the Panama Canal expansion project.

The narrow early industrial canals however have ceased to carry significant amounts of trade and many have been abandoned to navigation, but may still be used as a system for transportation of untreated water. In some cases railways have been built along the canal route, an example being the Croydon Canal.

A movement that began in Britain and France to use the early industrial canals for pleasure boats, such as hotel barges, has spurred rehabilitation of stretches of historic canals. In some cases abandoned canals such as the Kennet and Avon Canal have been restored and are now used by pleasure boaters. In Britain canalside housing has also proven popular in recent years.

The Seine-Nord Europe Canal is being developed into a major transportation waterway, linking France with Belgium, Germany and the Netherlands.

Canals have found another use in the 21st century, as wayleaves along the towing paths for fibre optic telecommunications networks.

Canals are still used to provide water for agriculture. An extensive canal system exists within the Imperial Valley in the Southern California desert to provide irrigation to agriculture within the area.