Oppie's canals
Search 'oppie' at Simtropolis.com and go to SimCity Central:
http://www.simcitycentral.net/forums/... (you must register/login here).

Simgoober's Brick canals
Search for 'brick canal' at the Simtropolis STEX: http://www.simtropolis.com/forum/file...
SimPeg's canals
Download from SimPeg.com, in the PLEX it's called PEG CSK, this is the link:
http://www.simpeg.com/forum/index.php...

The canals are eye-candy only, so no boats sail trough it or anyting. Most of the bridges are funtional: they are transit-enabled, but some are eyecandy ONLY.
The hole digger and ground lifter are both part of smoncrie's Hole Digging Lots, you can download those from Simtropolis.com:
http://www.simpeg.com/forum/index.php...

Now, download the canals you like and get creative!
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This is a reupload to this video ever since ErwinNegentig got deleted. Most of his videos were recorded and the description had been preserved luckily.