The canal lies in both the states of Berlin and Brandenburg, and at points forms the boundary between the two.

The Dahme provides a link to the Oder-Spree Canal, and hence to the River Oder and Poland.

Whilst the Dahme is a tributary of the River Spree, itself a navigable tributary of the Havel, the Teltow Canal offers the advantage of bypassing the centre of Berlin, with its heavy river traffic.

[1] At its western end, the Teltow Canal incorporates the Griebnitzsee lake which links to the Havel in Potsdam.

The Griebnitz Canal provides a second link to the Havel from the eastern end of the Griebnitzsee.