The new company obtained an Act of Parliament on 26 August 1889, creating the Sheffield and South Yorkshire Navigation Company, which was authorised to raise £1.5 million and to purchase the four canals either by negotiation, or by compulsory purchase if after nine months negotiations with the railway company had failed to reach an agreement. They could also improve the canals they bought, or build new ones, and could also act as inland carriers. The intent was to rebuild the Don and the Stainforth and Keadby routes to allow 300- or 400-ton barges to be used, and to develop coal-handling facilities at Keadby so that it would rival Goole on the Aire and Calder Navigation. In addition, the Dearne and Dove Canal would be dredged, so that compartment boats, like those on the Aire and Calder, could be used for the transport of coal.