Not like the Panama or Suez Canal, but like those that criss-cross the Netherlands or England.
Workers can build them on Flat land only. Rivers and fresh-water lakes can serve as canals by default, you get 10% production bonus if a city is connected by canals (or natural waterways like rivers and lakes) to the capital, and it doesn't stack with railroad bonus. Maintenance costs one gold per two tiles. Become available with Engineering (to make the locks). Can be filled in when railroads take over, but give a small tourism bonus after combustion (maybe adds 10% to the tourism of each city connected to the capital).
Workers can build them on Flat land only. Rivers and fresh-water lakes can serve as canals by default, you get 10% production bonus if a city is connected by canals (or natural waterways like rivers and lakes) to the capital, and it doesn't stack with railroad bonus. Maintenance costs one gold per two tiles. Become available with Engineering (to make the locks). Can be filled in when railroads take over, but give a small tourism bonus after combustion (maybe adds 10% to the tourism of each city connected to the capital).