Panama Canal Zone
The Panama Canal Zone () was an unincorporated territory of the United States from 1903 to 1979, centered on the Panama Canal and surrounded by the Republic of Panama. The zone consisted of the canal and an area generally extending on each side of the centerline, excluding Panama City and Colón, which otherwise would have been partly within the limits of the Zone. Its border spanned three of Panama's provinces. When reservoirs were created to assure a steady supply of water for the locks, those lakes were included within the Zone.
Panama Canal
At this time, the President and the Senate of the United States were interested in establishing a canal across the isthmus, with some favoring a canal across Nicaragua and others advocating the purchase of the French interests in Panama. Bunau-Varilla, who was seeking American involvement, asked for $100 million, but accepted $40 million in the face of the Nicaraguan option. In June 1902, the US Senate voted in favor of the Spooner Act, to pursue the Panamanian option, provided the necessary rights could be obtained.