The article presents the history and the impact of the Galician Canal project on the natural environment. In order to identify the relationship between political and economic decisions and the transformation of the natural environment, the Water System Concept was used. The canal was designed in Galicia belonging to the Austro-Hungarian Empire. The central government in Vienna decided to build a network of waterways in 1901. In Galicia, it was expected that this project would lead to economic development, which was dependent on export opportunities. The canal project assumed the construction of a canal connecting the Oder with the Vistula and theDniester. An integral element of the project was also the regulation of the rivers, which was to enable the control of the canal's supply with water and bed-load. After the collapse of the Empire, most of the canal was located in the territory of Poland.Repeated design changes meant that construction work on the canal was progressing slowly. Ultimately, the construction of the canal was abandoned, but the river regulation was completed. The canal is, therefore, an example of an unrealized project that significantly affected the natural environment. River regulation destroyed the multithread channel pattern and triggered the channel incision process. The transformation of multi-thread rivers to single-thread ones resulted in a reduction in biodiversity. The Carpathian rivers would never have been channelized to such a large extent had it not been for the canal project.