The city in Italy famous for its canals is Venice. Known for its picturesque waterways, gondolas, and stunning architecture, Venice is a unique city built on a network of islands in the Adriatic Sea. The canals serve as primary transportation routes and are lined with historic buildings, making Venice a UNESCO World Heritage Site. Tourists flock to the city to experience its rich cultural heritage, including art galleries, music festivals, and the renowned Carnival of Venice, celebrating its vibrant history.