Constructed over a period between 1847 and 1892, the Canal System, along with the Dam, is recognized as a Historic Mechanical Engineering Landmark by the American Society of Mechanical Engineers for its use in the development of the Venturi meter by Clemens Herschel, the first means of measuring large-scale flows, and the McCormick-Holyoke Turbine by John B. McCormick, which doubled the efficiency of turbines to more than 80% in its time.

[3] The earliest predecessor to Holyoke's canals dates to 1827, when the Hadley Falls Company was established to manufacture cotton cloth.

That year the company was reconstituted, with a capital stock of $4,000,000, to create a new manufacturing center based on local river power.

In 1848 the first timber crib dam, about 1,000 feet (300 m) in length, was constructed across the Connecticut River to divert water into the canals.

In 1859, after the company had failed and had passed into receivership, Alfred Smith purchased at auction its hydraulic system, consisting of the dam, its gate houses, and 2.5 miles (4.0 km) of power canals with a boat lock; some 1,100 acres (445 ha) of land in Holyoke containing mills and other buildings; and the public water supply reservoir and gas plant, each with a distribution system.

Energy was transmitted from the waterwheels to mills via a distribution system of gears, shafts, pulleys, and belts.

It extends eastward about a thousand feet and then sweeps south for more than one mile (1.6 km) to supply the upper tier of mills.

Five single lane bridges, all on the Third Canal, are closed, with one similar remaining in operation at Gatehouse Road.