The Grand Canal was constructed as far as Philipstown/ Daingean in 1797 providing the town with an opportunity to import goods at lower transport costs and to export turf and agricultural products to the city of Dublin.
Some immediate benefits came with the canal such as the large house (formerly Scully’s) on the western side of the Molesworth bridge and later the canal warehouse on the eastern side. This was described on the Killaly 1806-7 map as the collector’s house. The trade and stores business moved on to Tullamore exclusively for the six years pending the completion of the access to Shannon Harbour in 1804. The need for a canal hotel was eliminated with the building of the Tullamore hotel in 1801-2 and that at Shannon Harbour in 1806.
The line of the canal ran from Toberdaly to Killaderry parish, the townland of Castlebarnagh Big and into the town of Daingean. From there is passed on to Ballymullen and Ballycommon. As with Tullamore the canal came in on the north side of the town cutting through cabins in its way to the south of the military barracks and gallows hill. In the estate landscape that it was in the 1700s to the 1900s the big houses of Mount Briscoe, Clonearl and Kilduff were to the north and Springfield, Mount Lucas and the lost demesne of River Lyons to the south. The latter was almost devoid of trees unlike the well planted Clonearl and the planted avenue to the house at Mount Briscoe. On the southwest was the old crossing point of Ballinagar heading on to Tullamore.
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