The 'city of canals' usually refers to Venice, Italy.
Venice
Venice
Venice, Italy
The city known as canals is Venice.
Venice. (Though Birmingham, UK, has a greater length of canals).
Venice in Italy is traditionally known as the city of canals.
Venice , Italy
Italy is known as the "country of canals," particularly due to the city of Venice which is famous for its intricate network of canals running through the city.
That would have to be Venice, Italy.
canals and bridges
That would be Venice, Italy.