Welland Canal Port Maitland. With the opening of the extension, the canal stretched between the two lakes, with 40 wooden locks. The minimum lock size was , with a minimum canal depth of . Deterioration of the wood used in the 40 locks and the increasing size of ships led to demand for the Second Welland Canal, which used cut stone locks, within just a few years. In 1839 the government of Upper Canada approved the purchase of shares in the private canal company in response to the company's continuing financial problems in the face of the continental financial panic of 1837.
First Welland Canal however, shantytowns to house the labourers and their families were established along the way, giving birth to communities that later became Port Dalhousie, Merritton, Thorold, Allanburg and Port Robinson. As the Deep Cut progressed, plans were being made for an alternate route to Lake Erie. The original motivation behind the canal was to bring water to mills, and this was met by constructing a canal to the Welland River. However, as the plans evolved to include a ship route, they were accommodated by simply following the Welland River until it emptied into the Niagara River. This was suboptimal for a