Abstract: Under the influence of military, politics, economy, etc., ancient China constructed a large number of canals. These canals connected with natural water systems to provide an environmental foundation for settlement. In the construction of the past dynasties, a whole system of nature-canal-settlement was formed. This article takes Yangzhou area as an example to analyze the development of traditional settlement systems under the influence of the canal system. First, it summarizes the dynamic evolution of the canal water conservancy under the change of natural environment, then analyzes the canal system, concluding canal system composition and water conservancy operation. And then it analyzes the influence of the canal system on the settlement layout and settlement space construction. Finally, taking the city of Yangzhou in the Ming and Qing Dynasties as an example, it analyzes the urban-transportation landscape system of Yangzhou from four aspects:canal trends and urban axis formation, landscape nodes and urban order construction, water transportation and basic framework, canal culture and public space development. It provides reference for the protection of the canal heritage, the development of regional characteristics, and the construction of a landscape city.