In 1522 during the Revolt of the Brotherhoods, Canals was used by the viceroy as his headquarters to attack Xàtiva, where the 'Encobert' was hidden. Many prisoners were taken from Xàtiva to Canals. In 1639 Phillip IV, paid Xàtiva 20.000 pounds, and gave independence to Canals as a village (vila). In the 19th century Canals developed industry, with 24 glass factories, a paper factory, metal workshops, flour mills, and cloth sellers. In the 20th century this industrial activity increased with oil, furniture, construction materials, leather and cloth production.