The city's main thoroughfare is U.S. 25E. The U.S. 25E Tunnel (a.k.a. the Cumberland Gap Tunnel) is a tunnel that travels underneath the famous Cumberland Gap. The northern terminus is located in Middlesboro and the southern terminus is in Cumberland Gap, Tennessee. Middlesboro is one of the few cities in Kentucky that was not built on or near a significant waterway, so it is not reachable by water. The only major body of water near the city is Fern Lake, a small lake that sits on the Kentucky-Tennessee border. A man-made canal flows through the heart of the city. The canal channels Yellow Creek from the western part of the city through downtown and then heads north, northeast out of the city. The Middlesboro Canal was built by a large number of immigrants soon after the city was founded. The canal is home to numerous populations and species of ducks, all of which are considered to be honorary citizens of the city, despite the traffic headaches they may cause. Traffic and pedestrians must yield the right of way to the ducks at all times and anyone caught harming the ducks could face fines or jail time. Due to Middlesboro being known around the region for the large duck population, the canal serves as the raceway for the Downtown Ducky Dash rubber duck race held annually in August by Discover Downtown Middlesboro.