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The Panama Canal Zone, was a 553 square mile (1,432 km²) territory inside of Panama, consisting of the Panama Canal and an area generally extending 5 miles (8.1 km) on each side of the centerline (but excluding Panama City and Colón, which otherwise would have fallen in part within the limits of the Canal Zone.) Its border spanned two of Panama's provinces and was created on November 18, 1903 with the signing of the Hay-Bunau Varilla Treaty. When artificial lakes were created to assure a steady supply of water for the locks, those lakes were included within the Zone.
   From 1903 to 1979 the territory was controlled by the United States of America, which had built and financed the canal's construction. From 1979 to 1999 the canal itself was under joint U.S.-Panamanian control. In 1977 the Torrijos-Carter Treaties established the neutrality of the canal. (External Link) Except during times of crisis or political tension, Panamanians could freely enter the Zone. However, the 1903 treaty placed restrictions on their right to buy at retail stores in the Zone, for the protection of Panamanian shopkeepers.
   During U.S. control of the Canal Zone, the territory, apart from the canal itself, was used mainly for military purposes; however, approximately 3,000 American civilians (called "Zonians") made up the core of permanent residents. U.S. military usage ended when the zone returned to Panamanian control. It has now been integrated to the economic development of Panama, and is a tourist destination of sorts, especially for visiting cruise ships.
   The Panama Canal Zone was the birthplace of several notable Zonians such as U.S senator from Arizona John McCain, Richard Prince, Kenneth Bancroft Clark and Rod Carew.
   The largest U.S. Army unit based in the Canal Zone was the 193rd Infantry Brigade (Light), a mixed parachute-infantry/air-assault-capable light infantry unit. It was disbanded in 1994 during the Clinton Administration.
   Documentary filmmaker Frederick Wiseman made a film about the Panama Canal Zone, entitled CANAL ZONE, which was released and shown on PBS in 1977.

Panama Canal Company

The canal was operated by the Panama Canal Company (after 1979, it was the Panama Canal Commission). The Canal Zone Government controlled the Canal Zone; it was described as a cross between a colonial company enclave and a socialist government. Everyone worked for the Company or the Government in one form or another. There were no independent stores, goods were brought in and sold at a series of stores run by the company such as a commissary, house wares, and so on. The Canal Zone had its own police force (Canal Zone Police), courts, and judges. The U.S. District Court for the Canal Zone has been the only District Court to be disestablished in all of U.S. History. Civil and Criminal jurisdictions were assumed by the Republic of Panama. The head of the company was also the Governor of the Canal Zone. Residents didn't own their homes; instead they rented houses that were assigned, primarily based on seniority in the zone. When an employee moved away, the house would be listed and employees could apply for it. The utility companies were also managed by the company.

Tensions and the end of the Canal Zone

The Canal Zone ceased to exist on October 1, 1979 in compliance with provisions of the Torrijos-Carter Treaties. The existence of the Canal Zone, a political enclave of the U.S. that cut Panama geographically in half and had its own courts, police and civil government, was a cause of conflict between the two countries.

Townships and military installations

The Canal Zone was generally divided into two sections, the Pacific Side and the Atlantic Side, with Gatun Lake separating them.
   A partial list of Canal Zone townships and military installations:

Postage stamps

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