I provide this feasibility study for the future restoration of Tangxi Canal (Hangzhou, Zhejiang, China) to explore whether the canal district can become a social-interactive urban space with healthy environmental conditions and sustained connectivity with the canal waters. Overall, the Tangxi Canal District faces two challenges: first, pollution from fuel leaks from motorboats and stormwater runoff; and second, a lack of sociocultural interaction between residents and the canal. Therefore, the restoration of the Tangxi Canal area requires the following: (a) providing more green spaces and public spaces; (b) addressing environmental problems; and (c) providing more urban amenities.