From this very point the Circular Canal or the Creek or the Beliaghata Canal originates. According to some geological accounts, Beliaghata canal used to be a natural water course, more precisely, a distributary of the river Bhagirathi/Hooghly. For some reasons, it had been flowing eastward and met with the eastern lake channel near Dhapa and finally emerged out with the river Bidhyadhari. The British gadgets of early 18th century say that a small creek passed by the north of Dharmatala flowing from Chandpal ghat to Beliaghata, Salt water lake or Dhapa. This creek drained through Hastings Street, Bentinct Street and Wellington Square. During that period, a branch of the river Bidyadhari flowed through the Salt water lake - the present Salt Lake City. This river Bidyadhari met the river Matla and finally emptied in the Bay of Bengal. This channel was then navigable. The Creek Row and the Canal Street of Kolkata still carries the name of this creek. As this creek passed through Etly (pronounced Entally by the British), it was named as Entally canal. The area where the canal met the salt water lake was known as Baliaghat, and according to this, it is named as Beliaghata Canal. At this very point there is a lock-gate to regulate the flow of water into the canal maintained by KMC.

Now a days, the Beliaghata Canal is only a drainage canal but once upon a time it was a major creek of inter-Bengal transportation. It witnessed many historical facts like Job Charnock's coming to Kolkata, Bargi attack, Siraj-ud-daula's attack during the British rule etc. All the canals including Beliaghata canal in and around Kolkata are not utilized in a planned manner. Almost all the canal have lost their character by way of getting transformed into drainage canals. Due to non-maintenance & siltation, water has got stagnant in these canals & has got totally polluted to become hot-bed of harmful diseases.