Plans for a major canal to link Bristol and Poole, and therefore to make travel from the Bristol Channel to the English Channel easier and safer, were proposed in 1792.
By the time parliamentary approval was sought, the southern end had been cut back to Shillingstone, to reduce the cost, and an Act of Parliament was obtained on 24 March 1796, giving the company powers to raise £150,000, with an additional £75,000 if required.