The city known for its historic canal system in Italy is Venice. This unique city is built on a network of canals and islands, interconnected by numerous bridges. Venice is famous for its stunning architecture, including the Grand Canal, and iconic landmarks such as St. Mark's Basilica and the Doge's Palace. The city has a rich maritime history, serving as a significant trade center during the Middle Ages and Renaissance. Today, Venice is a UNESCO World Heritage Site, attracting millions of tourists who explore its labyrinthine streets and waterways.