Conolly Canal, sometimes spelled as Canoly Canal, is the part of the West coast canal network of Kerala and the canal was constructed by combining the rivers and streams along the coast with the intention of creating a vast waterway from Kozhikode to Kochi. It was constructed in the year 1848 under the orders of then collector of Malabar, H.V. Conolly initially to facilitate movement of goods to Kallayi Port from hinter lands of Malabar through Kuttiyadi and Korapuzhariver systems. The construction was from 1848–50. The canal was built almost entirely by human labour at a time when no machinery was in place. The Canoly Canal connects various rivers and streams including the Korapuzha river in the north and the Kallai River in the south thus forming part of the line of water communication from Vadakara to Beypore. The width of the canal varies between 6 and 20 metres, and the water depth during the monsoon ranges between 0.5 and 2 metres. This was the main waterway for the cargo movement between Kochi and Calicut, trade was the definition of the Canolly canal for more than a century. Major coastal towns such as Chavakkad, Ponnani and Kandassankadavu developed because of the freight trade along the canal. The main products of the coastal line, coconut oil and coconut fibre, were transported to Cochin by using "kettuvallam" through this canal. Many of the things in the once popular Chavakkadu Kuttakkunnu weekly market came through the Canolly Canal. Even the lives of ordinary people were associated with the canal. They used the water of cannoli for all purposes except drinking. The main dependence of the coastal settlers was for bathing and washing clothes. Fishing was also active in small ponds. The sides of most of the canal are lined with dimension stone, but at some locations the lining has collapsed. In a number of places along the canal, trees and bushes and water plants have grown, causing the water flow in the middle stretch of the canal to become weaker. The Canoly Canal Development Samithi in Kozhikode had decided to start speedboat service on the canal from Karaparamba to the Sarovaram park site in September 2009.
The Northern extend of Canoly Canal is Vatakara near the mouth of Kuttiady river.
From there it takes the course of Kuttiyadi river upstream till Thurayur or Payyoli Cherppu.
At Thurayur the canal takes a man made course up till Akalappuzha backwaters. From Akalapuzha through east of Koyilandy town the Canoli Canal take the course of various channels of Korapuzha river system.
Canoli canal leaves the Korapuzha system and enters its man-made urban stretch at Eranhikkal near Elathur, Kozhikode. From there the canal travels next 11.5-km through Kozhikode city till it reaches Kallayi River. During its course through this stretch the canal is severely encroached and polluted. There had been lot of revival projects around 2017. The famous Sarovaram Bio Park is along this stretch. In city Canoli canal travel through areas such as Kunduparamba, Karaparamba, Eranhipalam, Arayidathupalam Junction, Puthiyara, Mooriyad and Mankavu.The Mini Bypass road of Kozhikode city traverse nearly parallel to the Canoli Canal.
From Kallayi river near Mankavu canal begins its southward extension. This man made stretch of canal joining Chaliyar and Kallai River passes through OlavannaCheruvannur Nallalam and at Kolathara the canal meets Chaliyar river.
In Chaliyar river the canal travels downstream till Chaliyam-Beypore port through Feroke and then from Beypore it takes upstream of another channel on Chaliyar river drainage system through Karuvanthuruthy and Mannoor tiil Kallaampara.
From Kallaampara, Canoli canal then takes a man made channel of 2 km into Kadalundi River system by joining it near Athanickal which is 1.5 km upstream of Kottakadavu bridge and Keecheri River. The Biyyam kayal and Kanjiramukku rivers forms its northern boundary, Chalakudy River forms its southern boundaries and Canoli canal flows through its western boundary
From Enamakkal Lake the canal travels down stream of the Southern distributary of Karuvannur River and other rivulets through Kole region for almost 45 km until it meets Periyar near Kodungallur.
*In this stretch 4 km south of Enamakkal Lake the canal reaches Kandassankadavu. This area was also economically benefitted a lot because of trade and freight movement that happened through Canoli canal in the past.
*Almost 25 km south of Kandassankadavu near Padiyoor, there is a small canal from Canoli canal towards Irinjalakuda town.
The southern extend of Canoly Canal is Kodungallur where it meets the Periyar system and Kottapuram - Kollam stretch of National Waterway 3.