Yes, canal is a Scrabble word!

Verb

1. Provide (a city) with a canal

Noun

1. (astronomy) an indistinct surface feature of Mars once thought to be a system of channels; they are now believed to be an optical illusion

2. A bodily passage or tube lined with epithelial cells and conveying a secretion or other substance

3. Long and narrow strip of water made for boats or for irrigation