A plan to bring a canal into the centre of Swindon would cost £50m, a feasibility study has shown.
The report, by civil engineering firm Halcrow, said the scheme was possible - but expensive.
It said a number of roads would need to be ripped up and infrastructure such as gas, water, phone and electricity cables re-routed.
The canal is the brainchild of the Wilts and Berks Canal Trust, and will be discussed by the council next year.
The waterway's route has been pencilled in from the bottom of Kings Hill, along Westcott Place, and then into Faringdon Road.
It would travel past the Railway Village and end somewhere in the Fleet Street or Fleming Way area.