Dubai Water Canal, a Dh2-billion ($544 million) tourist landmark development offering a new lifestyle pattern in the heart of the city, is on track for opening next month with the work on the mega project nearing completion, said a report.

In what is being seen as a significant development, the project developers Roads and Transport Authority (RTA) have released water into the canal for the first time during its three year period of construction, reported the Gulf News.

This is part of a testing process and the level will be gradually increase through the next couple of weeks, said the report, citing a senior official.

"Dubai Canal is on track and our monitoring system in place ensures the project is ready according to the set plan," stated Laila Taher Faraidoon, the executive director at the office of Mattar Al Al Tayer, the RTA director general and chairman of the board.

Construction work is moving at a steady pace, with pedestrian bridges being built simulteanously at different locations, including a suspension bridge with a huge arch built about the canal, she added.

The project, which boasts a new shopping centre, four hotels and 450 restaurants as well as luxury housing and cycling paths, is being developed by the authority along with Dubai real estate groups Meydan City Corporation and Meraas.

The 3.2-km-long Dubai Canal, linked with the Business Bay Canal and Dubai flowing into Arabian Gulf, has now turned a major portion of old Dubai into an island, including areas like Bur Dubai, Zabeel, Al Karama, Oud Metha and Al Satwa, said the report.

Another important development that the canal will bring is a major upgrade to the marine transport in Dubai, it added.