Section 104 of the Transport Act 1968 (“the Act”) provides for the inland waterways comprised in the undertaking of the British Waterways Board to be divided into commercial waterways and cruising waterways (specified in Parts I and II of Schedule 12 to the Act) and the remainder (known as remainder waterways).

Section 104(3) of the Act enables the Scottish Ministers, by order, to add a remainder waterway to either Part I or II of Schedule 12. This Order adds the Forth and Clyde Canal and the Union Canal (both being remainder waterways) to the list of cruising waterways specified in Part II of Schedule 12.