It was intended to link the White Elster river with the Saale near Leuna and thus enable the city of Leipzig to be joined to Germany's inland waterway network.
The 11 kilometre long water-filled channel is one of the "special federal waterways".
[1] A lock was built near Wusteneutzch which would have allowed canal freight traffic to connect with the Saale; however the canal never reached this point.
This link would have given Leipzig access to the Elbe via the Saale and thus to Hamburg and the North Sea.
The canal was planned for ships up to 1,000 tonnes in weight (roughly Class IV).