Falsterbo, Skanör and Ljunghusen lie on the Skanör-Falsterbo peninsula (now essentially an island which is called "Näset").
During the Second World War when the Germans mined extensively outside Falsterbonäset at the Falsterborev (Falsterbo reef) in 1939, Sweden concluded that a canal was needed between Höllviken and Ljunghusen to allow safe passage of coastal traffic.
In 1896 fishermen in Skanör actually began to construct a canal here, but gave up due because of the difficulty of the task.
Today no heavy traffic passes through the canal and it is practically a passage and harbour for small craft.
The ferry between Copenhagen and Rønne on the Danish island Bornholm passed through the canal, and while waiting at the sluice, people would use the opportunity to jump to safety on Swedish territory.