The canal was 2 miles long with a new canal basin built in Tralee, and lock gates and a wooden swing bridge constructed in Blennerville.
However, not long after the canal opened, it too began to suffer from silting.
The canal fell into disuse and neglect, and was finally closed by the mid-20th century.
Following the restoration of Blennerville Windmill in the early 1990s, local authorities planned restoration of the canal for use as a tourist attraction.
In 1921 the Black and Tans dragged it from its pedestal and destroyed it.
The basin area of the canal was subsequently redeveloped with apartments blocks built as part of a proposed marina.Sir Edward Denny, 4th Baronet was a notable landlord in his day: during the time of the Great Famine, he maintained rents to suit his tenants, when other landowners increased them. The modern layout of Tralee was created in the 19th century.Denny Street, a wide Georgian street, was completed in 1826 on the site of the old castle.The towpath along the canal was upgraded and is now used by people as an enjoyable amenity as part of the Dingle Way.Tralee saw much violence during the Irish War of Independence and Irish Civil War in 1919–1923.The House of Commons authorised an Act of Parliament in June 1829 for the canal, with work beginning in 1832.