Construction of the canal was already under consideration as early as 1605, during the reign of Henry IV. Difficulties were foreseen in crossing the Morvan Massif, however. In addition to the route finally selected, studies were made for various other routes, all of them passing further to the north. In the end, however, it was decided that the canal should follow the valleys of the rivers Armançon and Ouche. Louis XV signed an edict for the canal's construction on 7 September 1773. In 1774 it was stipulated that the crown would pay for the section running to the Yonne while the other half, towards the Saône, would be funded by the Estates of Burgundy. In 1775 the total cost was estimated at 7.18 Million French pounds.