The Caoshan Water System, built during the Japanese era, was Taipei's second drinking water source project. The Banling Canal's intake is located in a restricted area below the third water pipeline bridge of this system. It draws water from the Songxi, a tributary of Huangxi, for irrigation. The nearby Yangmingshan Sapphire Spring, just over 10 meters away, was praised by the Japanese as "Asia's premier spring," indicating the area's excellent water quality and tranquil environment.

The Banling Canal Trail runs parallel to the canal and stream, featuring natural waterfalls like Songxi Waterfall, Banling Waterfall, and Cuifeng Waterfall along the way.