The history of the Indiana Central Canal

Ever wondered how our canal, which connects so many important points in the city, was built? Here’s your mini history lesson.

People paddling on the canal in a swan boat

You know it’s summer when you start seeing these swans.

Photo by INDYtoday team

Today, the area where the canal meets the White River is bustling with activity.

Teenagers hit the stairs with busted skateboards, families have picnics in the grass, friends get a workout pedaling swan-shaped boats, and 20-somethings who met on a dating app take awkward first date walks together. But what did the canal look like almost 200 years ago, and why was it built in the first place?

Getting around town hasn’t always been easy. In the early 1800s, people had to walk, ride horses, or hitch up a wagon to travel and conduct business. But once the Erie Canal was completed in New York, Hoosiers saw new opportunities to use waterways to optimize and accelerate local trade.

In 1836, the General Assembly passed the Mammoth Improvement Act, which funded eight major projects to improve transportation throughout Indiana. This included the construction of the Indiana Central Canal.

Downtown canal with skyline in background

We love a nice stroll on the Canal.

Photo via @gizadventures

Originally intended to run 296 miles, work on the canal suddenly stopped when the state faced bankruptcy in 1839. Only 26 miles had been dug, and about nine of those were operational.

But despite being considered a failure, the canal still helped Indy grow. Laborers flocked to the area, and in 1904, the Indianapolis Water Company began constructing the White Water Purification Plant.

In the 1980s, the city started restoring the 150-year-old canal, extending it into White River State Park and eventually constructing the Canal Walk. Soon after, in 2004, the canal and White River State Park was designated as one of Indy’s six cultural districts.

Have a good story of your own centered around the canal? Send it our way.

More from INDYtoday
In addition to wild geese that fly with the moon on their wings, these are a few of my favorite things — that are hyperspecific to Indianapolis.
What’s there to do in Indianapolis when you’re an introvert? We’ve cooked up a few ways you can get out on the town while staying in your comfort zone.
Dining in Indy is always a fresh experience with new restaurants popping up all the time — and more on the way.
Get your sweat on with something a little less common than your standard HIIT or yoga class.
Whether you’re looking to save money, improve your physical fitness, or something else, find the resources you need to stick to your New Year’s resolutions in 2026.
At these 10 miniature art galleries in the Indy area, you can take a piece of art or leave one for your neighbors to love.
Explore the options for giving your old tree new life, from dropping it off to be turned into mulch to creating a wildlife haven in your yard.
Fellow stargazers, consult our chart for a few spots around Indy to escape the light pollution of the city and look to the sky.
Bookmark this guide for a curated list of events taking place each month that we’re most looking forward to.
According to the library’s data, you couldn’t get enough of these books last year. See which titles you missed, plus staff picks.