Update: In the 1940s, boats used to carry cargo all the way from the sea-front all the way along Prangin Canal, which was once a river, passing by Capitol Cinema (demolished to make way for Komtar) until the junction of Transfer Road.
Back in the 19th century, George Town only reached up to Prangin Canal, and that’s why the old market area near the canal was called Sia Boey (end of the town). More history of Prangin Canal on the Travel Tips website.
31 March 2011:
Now that there are plans to revitalise the Prangin Canal area in Penang, those responsible should proceed very carefully with what they do, bearing in mind that the surrounding area is swampy ground.

