It was initially profitable, but from 1846 faced competition from the railways, and more seriously, subsidence caused by the coal mines that it was built to serve.
With the mines failing to pay tolls for goods carried on the canal, and in some cases refusing to accept responsibility for the subsidence, most of it was closed in 1895, although the final 1.5 miles (2.4 km) remained in use until 1949.
[1] The part of Derbyshire through which the Nutbrook Canal was built is remote, and although there were collieries at West Hallam and Shipley, it was poorly served by transport links.
A short spur from the Erewash Canal had been built to connect with a wagonway to Lord Stanhope's estates at Stanton and Dale.
However, an act was sought in 1792, but it was defeated in March, by objections from landowners who wanted it to be owned by a public company, rather than the mine owners.
[9] The canal was brought into use in stages, with the first tolls being collected in November 1794, and 17 boats carrying 639 tons recorded in that year.
One from just below Moor's Bridge went to Sir Henry Hunloke's estate at West Hallam, while a second, smaller branch left the main line just above Lock 3 to connect with Lord Stanhope's wagonway.
The excess over the £19,500 authorised by the Act of Parliament was managed by further calls on the shareholders, and debts were repaid out of the initial receipts.
[20] The condition of the canal continued to decline, with subsidence occurring at Shipley and under the West Hallam reservoir, on Mapperley Brook, in 1879.
[21] Excessive wastage from Mapperley reservoir was blamed on Charles Pounder, the canal keeper, and he was asked to leave in 1885, but his successor was worse.
[22] A final dividend was paid on the shares in 1885, and by 1888, the canal was barely solvent, for although 35,000 tons of coal and iron were carried, generating £440 of income, maintenance costs alone were £639.
Evidence was heard in March 1896,[27] by which time £1,258 had been spent, and the canal company decided to withdraw the bill, rather than run up more debts.
The middle section of the canal was bypassed by a 12-inch (30 cm) pipe, laid under the towpath, to ensure Stanton Ironworks still had a supply of water.
[28] In 1907, the company replied to a request from the Board of Trade for a statistical return that the canal was derelict, apart from 1.3 miles (2.1 km) "kept open for Stanton".
A request from the Midland Railway to convert bridges over the canal into embankments was denied by the proprietors, on the basis that they did not have to authority to grant it.
The road bridge at New Stanton was lowered in 1913 by the Ironworks Company, who attempted to get Shardlow Rural District Council to contribute to the cost, but there is no known record of the outcome.
[30] The Stanton Ironworks stood across the junction of the Nutbrook and Erewash Canals (and still does under different ownership) and continued to use the bottom section for the transport of finished iron products.
Stanton Ironworks expressed interest in purchasing Mapperley reservoir when the National Coal Board sold the Shipley estates in 1966, but there were objections to their intent to raise and lower the water levels as required.
The Stanton Fishing Club manages and maintains a section of the canal on Quarry Hill road in Ilkeston.