The canal opened in 1839, stretched 3 miles, and connected with the Huron River at the river's southernmost navigable point. Work had begun in 1832 with construction of the tow path. Two wooden locks allowed ships smooth passage up the valley over a change in elevation of 7 feet. The canal was considered economically justified because north of Milan the soil changed to sand, making it difficult for wagons carrying farm produce to reach the more northern lake ports in wet fall weather. It prospered briefly and reached its peak year in 1847, when wagons loaded with grain came from as far south as 100 miles away. Railroad development in the area caused a rapid decline; its main competitor, the Sandusky, Mansfield and Newark Railroad, reached Mansfield in 1846 and Newark in 1851. The canal closed in 1868 after the Huron River dam that fed water into it collapsed.