Coordinates: 9°07′03.61″N 79°43′12.60″W / 9.1176694°N 79.720167°W / 9.1176694; -79.720167

The Panama Canal Zone (Spanish: Zona del Canal de Panamá) was a 553-square-mile (1,430 km²) unorganized U.S. territory located within the Republic of Panama, consisting of the Panama Canal and an area generally extending five miles (8.0 km) on each side of the centerline, but excluding Panama City and Colón, which otherwise would have been partly within the limits of the Canal Zone. Its border spanned two of Panama's provinces and was created on November 18, 1903 with the signing of the Hay-Bunau Varilla Treaty. When reservoirs were created to assure a steady supply of water for the locks, those lakes were included within the Zone.

On February 26, 1904, the Isthmian Canal Convention was proclaimed. In this, the Republic of Panama granted to the United States in perpetuity, the use, occupation and control of a zone of land and land under water for the construction, maintenance, operation, sanitation and protection of the canal.

The Panama Canal (Spanish: Canal de Panamá) is an 82-kilometre (51 mi) ship canal in Panama that connects the Atlantic Ocean (via the Caribbean Sea) to the Pacific Ocean. The canal cuts across the Isthmus of Panama and is a key conduit for international maritime trade.

Work on the canal, which began in 1880, was completed in 1914, making it no longer necessary for ships to sail the lengthy Cape Horn route around the southernmost tip of South America and to navigate the dangerous waters of the Strait of Magellan. One of the largest and most difficult engineering projects ever undertaken, the Panama Canal shortcut made it possible for ships to travel between the Atlantic and Pacific Oceans in half the time previously required. The shorter, faster, safer route to the U.S. West Coast and to nations in and along the Pacific Ocean allowed those places to become more integrated with the world economy.

Ownership of the territory that is now the Panama Canal was first Colombian, then French and then American before coming under the control of the Panamanian government in 1999. The Panama Canal has seen annual traffic rise from about 1,000 ships when it opened in 1914, to 14,702 vessels in 2008, the latter measuring a total of 309.6 million Panama Canal/Universal Measurement System (PC/UMS) tons. By 2008, more than 815,000 vessels had passed through the canal, many of them much larger than the original planners could have envisioned; the largest ships that can transit the canal today are called Panamax. The American Society of Civil Engineers has named the Panama Canal one of the seven wonders of the modern world.

Panama (ⁱ/ˈpænəmɑː/ PAN-ə-mah; Spanish: Panamá), officially the Republic of Panama (Spanish: República de Panamá [reˈpuβlika ðe panaˈma]), is the southernmost country of Central America. Situated on the isthmus connecting North and South America, it is bordered by Costa Rica to the west, Colombia to the southeast, the Caribbean to the north and the Pacific Ocean to the south. The capital is Panama City. Explored and settled by the Spanish in the 16th century, Panama broke with Spain in 1821 and joined a union of Nueva Granada, Ecuador, and Venezuela, named the Republic of Gran Colombia.When Gran Colombia the dissolved in 1831, Panama and Nueva Granada remained joined. Nueva Granada later became the Republic of Colombia.

With the backing of the United States, Panama seceded from Colombia in 1903, allowing the Panama Canal to be built by the U.S. Army Corps of Engineers between 1904 and 1914. In 1977, an agreement was signed for the complete transfer of the Canal from the United States to Panama by the end of the century.

Canal Zone may refer to: