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From the Morris Canal Society of New Jersey background sheet:

The Morris Canal, connecting Philipsburg on the Delaware River with Jersey City on the Hudson River, was an engineering marvel for its time. In its 102 mile length it went through elevation changes that totaled 1,674 feet. To overcome most of these changes the canal boats were moved over 23 “inclined planes”. The boats were cradled in “plane cars” that were pulled up
or let down the plane on rails with the power supplied by water from Lake Hopatcong which was dammed and the level of the water raised 10 feetl – this water flowing through a “Scotch turbine” located deep underground. This system made the Morris Canal unique in the world. The canal connected the anthracite coal fields of Pennsylvania’s Lehigh Valley with the New York-New Jersey markets and thus significantly aided in the development of industry and cities in that area. It permitted the revival of the languishing iron industry in North Jersey and generally accelerated the development of the northern part of the state. Farm products, manufactured goods, raw materials and construction materials were also moved. The canal was the primary impetus for these developments because it was the only efficient bulk transportation system in operation in North Jersey during the first half of the nineteenth century. The second half of the nineteenth century saw the development of a more efficient bulk transportation system – the railroad – that eventually put the Morris Canal out of business.

This site will describe the location and vestiges of the Morris Canal in Jersey City. There is a plan to build a pedestrian and bicycle pathway on or near the remnants of the Canal with appropriate signage when money is avallable. 
Subpages (1): The Canal on Route 440