Canal automation plays an important role in water conveyance system. It provides rapid transfer of water with frequent changes, while incorporating flexibility in operation. This paper proposes a local automatic, downstream, demand-oriented canal automation system using LabVIEW. It deals with the hardware devices which sense the available water quantity, computes the amount of water discharge and operates actuators through LabVIEW based software control system for regulating the water flow. The LabVIEW software module is used which automates process control, provides better accuracy, and reduces the cost.