After a survey was completed in 1877, dredging of the canal began in April 1878. Lake Alto was reached in May 1879; Little Lake Santa Fe in March 1881. The F.S. Lewis, a 90 foot side-wheeler built in Waldo, made its first trip through the 30 foot wide canal on April 26, 1881. In 1885 it was replaced by the Alert, which had come by rail from Jacksonville, had a cabin and passenger acccomodations, measured 55-60 feet in length with a 12-14 foot beam, and had a 3 1/2 to 4 foot draft. Goods carried by the steamers included citrus, strawberries, peaches, vegetables, cotton, naval stores, and coffins of deceased northern settlers and visitors. Businessmen, local travelers, tourists, and visitors traveled by boat until hyacinths clogged the canal and the Alert ceased to operate in 1907. By 1920 autos and trucks served as the means of transport between Waldo and Melrose.