[2] The canal was constructed by the U.S. Army Corps of Engineers in 1965 to allow the transport of crude oil by barge to two power plants south of Titusville, Florida.

It has a rise of 3–4 feet (0.91–1.22 m) and protects Canaveral Harbor from tidal currents, storm surge, and salt water.

The lock is free of charge and takes 20 to 30 minutes for watercraft to traverse.

The canal is popular with recreational boaters, providing access to Sykes Creek and various marinas.

The next-closest passages between the Intracoastal Waterway and the ocean are Ponce de Leon Inlet, 50 miles (80 km) to the north, and Sebastian Inlet, 40 miles (64 km) to the south.