Although it is probably one of the most unattractive thoroughfares in Manhattan, Canal Street nevertheless carries out an important function: it connects the State of New Jersey to Brooklyn via Manhattan. On the west it starts at the exit of the underwater Holland Tunnel, which runs under the Hudson River from Jersey City, and on the east Canal Street ends at the beginning of the Manhattan Bridge, which stretches over the East River to downtown Brooklyn. Canal Street is also the northern border of Chinatown and the southern border of Little Italy and Soho.
Although not many people know it, a canal was dug in this location in 1820 in order to drain the Collect Pond, a polluted pond that had spread disease to the local slum known as the Five Points. The canal was connected to the Hudson River and within a year the pond was drained. In the second half of the 19th century the canal was filled in and turned into a bustling street.
Today Canal Street is known for its cheap, and often counterfeit, merchandise, sold mostly by Chinese Americans. Tourists will laugh at the oddly inexpensive Rolex watches, Cartier jewelry and pirated CDs. However, the audio and visual technology found in stores on or around the street is usually authentic and is a good bargain, compared to uptown stores.