The canal was built to allow transport of coal from coal mines near Wyrley, Essington and New Invention to Wolverhampton and Walsall, but also carried limestone and other goods. An Act of Parliament received the Royal Assent on 30 April 1792, entitled ""An Act for making and maintaining a navigable Canal from, or from near, Wyrley Bank, in the county of Stafford, to communicate with the Birmingham and Birmingham and Fazeley Canal, at or near the town of Wolverhampton, in the said county; and also certain collateral Cuts therein described from the said intended Canal"". The act authorised the construction of a canal from the Birmingham Canal near Wolverhampton to Wyrley Bank, and the raising of up to £45,000 to pay for construction, £25,000 from the issuing of shares and another £20,000 in loans. The appointed engineer was William Pitt, who might have been the Staffordshire historian, but the minute books of the committee have not survived, so there are no details of how the work progressed, or of Mr Pitt. The Birmingham Canal Company was renamed the Birmingham Canal Navigations (BCN) in 1794.