This combined waterway allows ships to sail between Lake Michigan and Green Bay without traversing the dangerous Porte des Morts strait.

The canal is approximately 1.3 miles (2.1 km) long, cutting through the eastern side of the peninsula in a northwest-to-southeast orientation.

The Sturgeon Bay Ship Canal was dug by a private group headed by then-president of Chicago and North Western Railway, William B. Ogden, between July 8, 1872 and the late fall of 1881.

In 1893, the Ogden private investors group sold all interest in the canal to the United States government.

[4] Two jetties frame the canal's southeast entrance, each extending about 1,200 feet (370 m) into Lake Michigan.