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The canal was dug in 219BC at the order of Qin Shihuang (the First Emperor of China), to facilitate the transportation of grain for the military after he sent his troops south to conquer the territory south of the Meiling Mountain. It connected the Xiangjiang River and the Lijiang River. Later, every dynasty revamped the canal, making it the major water course that linked the Lingnan Region (current Guangdong Province and the Guangxi Zhuang Autonomous Region) and the central part of China.
After the People's Republic of China was founded in 1949, the canal undertook extensive repairs, turning into an important water resource for irrigation, drinking and industrial production, as well as a scenic spot. Currently, it is an important cultural relic of the country.