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.

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. ^*

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 is now a tourist destination of sorts, especially for visiting cruise ships.

The Panama Canal Zone was the birthplace of John McCain, Richard Prince, and Rod Carew.

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; kind of 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, courts and judges. The head of the company was also the Governor of the Canal Zone. No one owned houses; instead they rented houses that were assigned, primarily based on seniority in the zone. When someone would leave for one reason or another, the house would be listed and employees could apply for it. The utility companies were also run by the company.

Townships

---

The Canal Zone was generally divided into two sections, the Pacific Side and the Atlantic Side, with Lake Gatun separating them.

A partial list of Canal Zone townships:

• Pacific Side
  • Amador - on the coast, partly built on land extended into the sea using excavation materials from the canal construction
  • Ancon - built on the lower slopes of Ancon Hill, adjacent to Panama City. Also home to Gorgas Hospital.
  • Balboa - Administrative capital, as well as location of the harbor and primary Pacific Side high school
  • Balboa Heights
  • Cardenas - as the Canal Zone was gradually handed over to Panamanian control, Cardenas was one of the last Zonian holdouts.
  • Diablo
  • Diablo Heights
  • Gamboa - headquarters of dredging division, located on Lake Gatun. Many new arrivals to Canal Zone were assigned here.
  • La Boca - home of the Panama Canal College
  • Los Rios
  • Paraiso
  • Pedro Miguel
  • Red Tank - was abandoned and allowed to be overgrown sometime around 1950.

• Atlantic Side
  • Coco Solo - main hospital
  • Cristobal - main Atlantic Side high school
  • Gatun
  • Margarita
  • Rainbow City

Postage stamps

---

see: Postage stamps and postal history of the Canal Zone

Panama Canal | Historical regions and territories of the United States | Special territories | 1903 establishments

Zona del Canal de Panamá | Zone du canal de Panamá | Zona del Canale di Panamá | Panamakanaalzone | パナマ運河地帯 | Strefa Kanału Panamskiego | Zona do canal do Panamá | Panamakanalzonen