On 27 July 1803, an Act of Parliament was passed to authorise the project, and carried the title: An Act for granting to his Majesty the Sum of £20,000, towards defraying the Expense of making an Inland Navigation from the western to the eastern Sea, by Inverness and Fort William; and for taking the necessary steps towards executing the same.
The Act appointed Commissioners, to oversee the project, and some funding to enable the work to start.
Less than a year later, on 29 June 1804, the Commissioners obtained a second Act of Parliament, which granted them £50,000 per year of government money, payable in two instalments, to fund the ongoing work.
Provision was made for private investors to buy shares in the scheme, for any amount over £50, and as well as building the main line of the canal, the engineers could alter Loch Garry, Loch Quoich and Loch Arkaig, to improve their function as reservoirs.
Telford was asked to survey, design and build the waterway.
He worked with William Jessop on the survey, and the two men oversaw the construction until Jessop died in 1814.
The canal was expected to take seven years to complete, and to cost £474,000, to be funded by the Government, but both estimates were inadequate.

Because of the remoteness of the location, construction was started at both ends, so that completed sections could be used to bring in the materials for the middle sections.
As Thomas Telford could only visit the work about twice a year, he appointed Matthew Davidson, like Telford, a Dumfrieshire stonemason, to manage the work at the east end.
John Telford, who is thought not to have been related to Thomas, was to manage the difficult western end.
The work was to prove a serious challenge to John Telford's health and he died in 1807, to be replaced by Alexander Easton.
John Telford was buried in Kilmallie churchyard, where his ornate grave, now in dilapidated condition, can still be seen.

At Corpach, near Fort William, the entrance lock was built on rock, but at the other end, there was 56 feet (17 m) of mud below the proposed site of the sea lock.
Rock was tipped on top of the mud and was allowed to settle for six months before construction could begin.
The ground through which the canal was cut was variable, and further difficulties were experienced with the construction of the locks, the largest ever built at the time.
There were also problems with the labour force, with high levels of absence, particularly during and after the potato harvest and the peat cutting season.
This led to Telford bringing in Irish navvies to manage the shortfall, which led to further criticism, since one of the main aims of the project was to reduce unemployment in the Highlands.
The canal finally opened in 1822, having taken an extra 12 years to complete, and cost £910,000.
Over 3,000 local people had been employed in its construction, but the draught had been reduced from 20 to 15 ft (6.1 to 4.6 m) in an effort to save costs.
In the meantime, shipbuilding had advanced, with the introduction of steam-powered iron-hulled ships, many of which were now too big to use the canal.
The Royal Navy did not need to use the canal either, as Napoleon had been defeated at Waterloo in 1815, and the perceived threat to shipping when the canal was started was now gone.
On 27 July 1803, an Act of Parliament was passed to authorise the project, and carried the title: An Act for granting to his Majesty the Sum of £20,000, towards defraying the Expense of making an Inland Navigation from the western to the eastern Sea, by Inverness and Fort William; and for taking the necessary steps towards executing the same. The Act appointed Commissioners, to oversee the project, and some funding to enable the work to start. Less than a year later, on 29 June 1804, the Commissioners obtained a second Act of Parliament, which granted them £50,000 per year of government money, payable in two instalments, to fund the ongoing work. Provision was made for private investors to buy shares in the scheme, for any amount over £50, and as well as building the main line of the canal, the engineers could alter Loch Garry, Loch Quoich and Loch Arkaig, to improve their function as reservoirs. Telford was asked to survey, design and build the waterway. He worked with William Jessop on the survey, and the two men oversaw the construction until Jessop died in 1814. The canal was expected to take seven years to complete, and to cost £474,000, to be funded by the Government, but both estimates were inadequate.
Because of the remoteness of the location, construction was started at both ends, so that completed sections could be used to bring in the materials for the middle sections. As Thomas Telford could only visit the work about twice a year, he appointed Matthew Davidson, like Telford, a Dumfrieshire stonemason, to manage the work at the east end. John Telford, who is thought not to have been related to Thomas, was to manage the difficult western end. The work was to prove a serious challenge to John Telford's health and he died in 1807, to be replaced by Alexander Easton. John Telford was buried in Kilmallie churchyard, where his ornate grave, now in dilapidated condition, can still be seen. 
At Corpach, near Fort William, the entrance lock was built on rock, but at the other end, there was 56 feet (17 m) of mud below the proposed site of the sea lock. Rock was tipped on top of the mud and was allowed to settle for six months before construction could begin. The ground through which the canal was cut was variable, and further difficulties were experienced with the construction of the locks, the largest ever built at the time. There were also problems with the labour force, with high levels of absence, particularly during and after the potato harvest and the peat cutting season. This led to Telford bringing in Irish navvies to manage the shortfall, which led to further criticism, since one of the main aims of the project was to reduce unemployment in the Highlands. The canal finally opened in 1822, having taken an extra 12 years to complete, and cost £910,000. Over 3,000 local people had been employed in its construction, but the draught had been reduced from 20 to 15 ft (6.1 to 4.6 m) in an effort to save costs. In the meantime, shipbuilding had advanced, with the introduction of steam-powered iron-hulled ships, many of which were now too big to use the canal. The Royal Navy did not need to use the canal either, as Napoleon had been defeated at Waterloo in 1815, and the perceived threat to shipping when the canal was started was now gone.
Caledonian Canal