This article presents the history of the construction of the Augustów Canal in the first half of the 19^th century and its subsequent exploitation. The analysis reveals socio-economic reasons for the changing functions of one of the largest artificial waterways in Europe, along with various engineering and hydro-technical solutions used in its construction. A review of the contemporary condition of the Belarussian section of the canal in the Grodno region contributes to the discussion of its potential as a possible museum, recreational site and tourist attraction.