Between 1800 and 1830, Stephen Perley built a canal to carry water from the river above the Avery Dam to power the mills. Perley was a farmer who also managed a general store and several sawmills. As the town grew, he established shops that made nails, starch, linseed oil and cotton cloth. He was also involved in the Belknap Mill. The Perley Canal connects the Winnipesaukee River, near the Church Street Bridge, to the complex once owned by the Laconia Car Company. Today, the canal is a concrete tunnel that runs beneath the city.
To trace the canal, begin at the building behind the Laconia Spa, continue parallel with Church Street to the parking lot behind the Post Office, go under the businesses on the south side of Canal Street, turning south under the stage of the Colonial Theater, then turn southwest and emerge under the front door of the Laconia Antique Center, proceed down Bank Square to Bootlegger’s and turn west again to the former Laconia Car Company/Allen-Rogers complex. The canal ends there at the former site of the water-driven turbine.