The Warren County Canal ran for 17 miles connecting Lebanon with the Miami & Erie Canal at Middletown. At least that was the original plan. Begun on February 22, 1830 work progressed on the canal until the suspension of company operations in 1835-6. Funding for the canal had been slow in coming because Lebanon would be the only community benifitting from the canal and would therefore be required to foot the vast majority of the cost of construction. Finally in 1836 they asked the Legislature for money to complete the canal ( approx $128,000 ). The Legislature was favorable and included the Warren Canal in the Public Works Legislation of 1836.
Although the canal was slated to be completed in 2 years, delays due to delinquency on contracts and higher costs prevented its opening until 1840. The "Commerce" was the first boat to travel from Hamilton to Lebanon in June 1840.

Route

The canal route was originally an old stage route and would later become a railroad route. It was begun just above the lock at Middletown and crossed the valley between the Great Miami and the Little Miami in a long curve down Muddy Creek to the Turtle Creek Valley, then up the stream to Lebanon.
There were 6 locks to navigate the 50 foot difference. Locks 1,2,3 & 4 at the east end of the canal were within 2 miles of each other with a lift totaling 28 feet. The east end of the canal was fed by both branches of Turtle creek. Locks 5 & 6 were located at the west end of the canal with a combined lift of 16 feet. There was a 3 mile feeder at this end of the canal. The long stretch between locks 4 & 5 was fed by diverting the water from Shaker Run directly into the canal. Estimates showed that this was really unnecessary as engineers showed that the other feeders could provide enough water for this area.

Problems

By diverting Shaker Run the canal had major problems keeping the canal channel and locks free from silt, mud and debris from the river whenever there was a storm.
Another major problem arose in the engineering of the canal. A mistake was made in levels which made the floor of the aqueduct over Dicks Creek higher than the floor of the channel. This prevented heavy loads from passing through and caused damage to boats that did.

Demise

It was never a busy or prosperous canal. After a break at Shaker Run was never repaired all through traffic ceased. In 1852 the State was asked to repair the canal but nothing was done. In 1856 the property was sold to J.W. Corwin & R.H. Hendrickson for $40,000. The State and Canal company had spent $228,660 to construct it. By 1882 there was nothing of the canal left.