In 1850, a royal decree was issued by King Willem III granting permission to dig this canal. In 1851, work began on this great undertaking. 532 workers were involved in this immense project. They earned 15 cents per cubic ell of excavated soil. The soil was used for the canal embankment. On June 12, 1855, the section Hancate-Almelo was opened, and on September 7, the section Dalmsholte-Deventer.
Until about 1956, ships navigated through the canal carrying sugar beets, peat, sand, and fertilizers. Today, the canal is used for the supply and drainage of water.
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