a strip of land that extends 5 mi (8 km) on either side of the Panama Canal: the land was formerly under lease to the U.S., which governed it (1904-79); it was returned to Panama and the name abolished in 1979
See Canal Zone in American Heritage Dictionary 4
(kə-nălˈ) also Pan·a·ma Canal Zone(pănˈə-mäˌ)
Abbr. CZ
A strip of land, about 16 km (10 mi) wide, across the Isthmus of Panama. Formerly administered by the United States for the operation of the Panama Canal, it was turned over to Panama in 1979.