First Welland Canal 1818, when the flow was especially low, Merritt pursued the idea of bringing water to his mills from the Welland River. On a bigger scale, the Erie Canal, dug from the Hudson River through northern New York, was about to reach Lake Erie. The impending completion meant the cargo from upper Great Lakes was about to head down the canal and Hudson River to New York City, bypassing its previous destination, Montreal. At the time, a considerable rivalry existed between Montreal and New York for cargo headed to Europe via ocean-going vessels. All of these factors contributed to the construction
Chenango Canal in a water highway to what would become the Midwestern United States, connecting to the Great Lakes at Buffalo. It connected the Great Lakes to the Hudson River and then to the port of New York City. The Erie made use of the favorable conditions of New York's unique topography which provided that area with the only break in the Appalachian range—allowing for east-west navigation from the Atlantic coast to the Great Lakes. The canal system gave New York State a competitive advantage, helped New York City develop as an international trade center, and allowed Buffalo to grow from just