Is the Panama Canal in Panama?

YesThe canal and the surrounding area has legally been considered Panamanian since December 31st 1999. Before then it was under US control and used primarily as a military base. Former presidential Candidate John McCain was born in the canal zone while it was under US control, and was allowed to run for president in the 2008 election because it was counted as the United States for all legal purposes (though it was not a state).