The canal started at the Upper Forge, and ran close to the Newerne stream, also called The Lyd. The lower section took a more direct route to the Lower Forge, using the course of the leat which had supplied the works with water. There were three locks near the Middle works. The canal crossed the Chepstow road between Lydney and Newerne, and the branch from the Lower Forge to Lydney Pill was quite short.
