Canal Street in the southern part of town, was built for a part of its distance over Dutch Gap canal. No one seems to know how long the canal was there, though some speculate it was built in colonial times.
Plans for a canal over the Dutch Gap (possibly named after the Dutch Gap canal in New York) were drawn up in 1883. It would run from a point above Roslyn Street to a point above the Eastern Railroad tracks. It was to have walls of stone, but the bottom would be made of spruce or pine planks. The plan included a street that would run beside the canal (Canal Street.)
At some point the plans changed to include part of Canal Street running over the canal. It was used to bring sewage out of South Salem as well.
By 1914, this canal seems to have failed to hold up, as city councilors called for emergency repair, calling a portion the covering of the canal running under Canal Street unsafe for travel and a threat to public health and safety.
"To Examine Canal Street" Salem Evening News, Apr. 14, 1893, p. 1
"A Hole in Canal Street" Salem Evening News, Feb. 4, 1891, p.1
"Canal Street has seen many changes" Salem Evening News, May 9, 1956, p. 1