The Miami and Erie Canal was a 274-mile canal that ran from Cincinnati to Toledo, Ohio, creating a water route between the Ohio River and Lake Erie. Construction on the canal began in 1825 and was completed in 1845. Boats up to 80 feet long were towed along the canal by mules, horses, or oxen walking on a prepared towpath along the bank, at a rate of four to five miles per hour.

Due to competition from railroads, which began to be built in the area in the 1850s, the commercial use of the canal gradually declined during the late 19th century. It was permanently abandoned for commercial use in 1913 after a historic flood in Ohio severely damaged it.

Five hundred feet north of the Taylorsville dam stands the foundation of an Aqueduct. This large, water filled bridge allowed canal boats to cross over the river.