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.

A movement that began in Britain and France to use the early industrial canals for pleasure boats, such as hotel barges, has began very popular. In some cases abandoned canals such as the Kennet and Avon Canal have been restored and are now used by pleasure boaters. In Britain canal-side housing has also become 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 ducts 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.