It was an ill-considered venture, with the locks built narrower than the other Irish waterways, preventing through trade, and an inadequate water supply.

It was an abject failure commercially, and contributed to the collapse of the Lagan Navigation Company, who took it over from the government but were then refused permission to abandon it when they could not afford the maintenance costs.

[1] The Directors General of Inland Navigation asked Evans to prepare an estimate of the costs to finish the work in 1801, but no action was taken.

His estimate of £233,000 would provide a canal which ascended through six locks from Wattlebridge to a summit near Monaghan and then descended through another sixteen to reach Lough Neagh.

[2] A public meeting was held at Monaghan in February 1817, and despite strong local support, including an offer to provide two-thirds of the cost by a group of landowners and businessmen, the Directors General did not take any action, and the project remained an idea.

[4] The canal failed to generate significant trade, as the water supply was inadequate, and goods had to be transhipped at either end into narrower boats.

After cosmetic repairs, it was leased to William Dargan, who had built most of it as contractor, and ran the only significant carrying operation on the waterway.

Sir John Macneill, the Irish railway engineer, suggested that the best use of it was to drain the water and let cows graze on it.

Maintenance costs far exceeded revenue, and what little traffic there was, was confined to the Lough Erne end of the canal, as the summit was mostly unnavigable, and there was only sufficient water during eight months of every year.

A series of negotiations then took place, but the government failed on three occasions to pass a bill to authorise the sellout to the Lagan Canal.

[6] The House of Lords had succeeded in removing a clause from the bill which allowed the Lagan Navigation Company to close the Ulster Canal after ten years, and they were saddled with a liability in perpetuity.

Stretches in County Monaghan which were not derelict at that time (i.e., which were being occupied) could not be acquired and ownership remains with the Office of Public Works.

There are two isolated locks near Middletown, and the a level section before the canal reaches a gorge to the west of Benburb.

The report found that there were no insurmountable engineering problems to such a plan but issues such as lock capacity/size and the adequacy of the water supply would need to be addressed.

Rather than being a true restoration, it involved the construction of a state-of-the-art waterway along a historic route, and a similar approach would be required on the Ulster Canal.

[10] At the North/South Ministerial Council meeting on 17 July 2007, it was announced that the governments would work towards the restoration of the stretch of the canal linking the town of Clones, in County Monaghan, to Upper Lough Erne.

[11][12] In August 2010, Waterways Ireland published an Ulster Canal Restoration Plan, an Environmental Report and an Appropriate Assessment.

[14][15] Despite a few objections,[16] Minister Heather Humphreys announced in February 2015 that the Irish government had given its approval to Waterways Ireland for the restoration of the canal between Castle Saunderson and Erne basin.

[17] On 24 April 2015 the project was formally launched, when a meeting was held at Derrykerrib Bridge, attended by Heather Humphreys and representatives of Waterways Ireland.

The first phase involved extending the Erne Navigation from Quivvy Lough to Castle Saunderson, near Belturbet.

Dredging of a section of the Finn River was expected to take place in Autumn 2015,[18] but this was delayed, with "contractual issues" being cited as the cause.

[19] There were further delays caused by poor ground conditions, flooding, and the need to maintain access for residents while the work was ongoing.