Much of the Amsterdam canal system is the successful outcome of city planning. In the early part of the 17th century, with immigration rising, a comprehensive plan was put together, calling for four main, concentric half-circles of canals with their ends resting on the IJ Bay. Known as the "grachtengordel",[1] three of the canals are mostly for residential development (Herengracht or ‘’Patricians' Canal’’; Keizersgracht or ‘’Emperor's Canal’’; and Prinsengracht or ‘’Prince's Canal’’), and a fourth, outer canal, the Singelgracht, for purposes of defense and water management. The plan also envisaged interconnecting canals along radii; a set of parallel canals in the Jordaan quarter (primarily for the transportation of goods, for example, beer); the conversion of an existing, inner perimeter canal (Singel) from a defensive purpose to residential and commercial development; and more than one hundred bridges. The defensive purpose of the Nassau/Stadhouderskade was served by moat and earthen dikes, with gates at transit points but otherwise no masonry superstructures.[2]

Construction proceeded from west to east, across the breadth of the layout, like a gigantic windshield wiper as the historian Geert Mak calls it – not from the center outwards as a popular myth has it. Construction of the north-western sector was started in 1613 and was finished around 1625. After 1664, building in the southern sector was started, although slowly because of an economic depression.[which?] The eastern part of the concentric canal plan, covering the area between the Amstel river and the IJ Bay, was not implemented for a long time. In the following centuries, the land went mostly for park, the Botanical garden, old age homes, theaters and other public facilities – and for waterways without much plan.[3]

Several parts of the city and of the urban area are polders, recognizable by their postfix -meer meaning 'lake', such as Aalsmeer, Bijlmermeer, Haarlemmermeer, and Watergraafsmeer. The canals in Amsterdam are now used for tourism, recreation, houseboats, and a relatively small amount of private transport compared to the main modes of walking, light rail, subway, and bicycle. Most of the canals are paralleled by automobile roads on both sides.