The Sheffield Canal Company was formed in 1815 with the intention of connecting Sheffield industry with the navigable stretches of the River Don north of Tinsley, giving access to the River Ouse and the North Sea. Construction of the canal began in 1816, followed by the opening three years later on 22nd February 1819. The canal provided a boost to local industry, providing collieries with the means to transport their goods over long distances to reach a wider market. The canal remained somewhat successful throughout the nineteenth century, but faced strong competition following the spread of the rail network throughout the area. In 1848, two years after its arrival, the Manchester, Sheffield and Lincolnshire Railway Company took ownership of the canal, and it remained affiliated with the railway through the rest of the nineteenth century.
The canal fell into neglect during the early Twentieth Century, as the First World War placed heavy demands on national resources and labour power. The majority of the boats were commandeered as troop transports on the canals of Flanders. Attempts to revitalise the canal followed the war, but were largely unsuccessful due to a lack of funding.
The Second World War saw the locks at Tinsley Flight damaged in German bombing raids. A plaque nearby records the efforts of the workers who repaired the canal in difficult circumstances. The nationalisation of the canals after World War II brought a small increase in traffic, but even this proved to be temporary. A small amount of trade remained until the 1970s, after which the canal fell into disuse. The canal entered a period of decline as a commercial operation, but was restored and redeveloped as a scenic route in the early 1990s.