Venice is world-famous for its canals. It is built on an archipelago of 118 islands formed by about 150 canals in a shallow lagoon. The islands on which the city is built are connected by about 400 bridges. In the old center, the canals serve the function of roads, and every form of transport is on water or on foot. In the 19th century a causeway to the mainland brought a railway station to Venice, and an automobile causeway and parking lot was added in the 20th century. Beyond these land entrances at the northern edge of the city, transportation within the city remains, as it was in centuries past, entirely on water or on foot. Venice is Europe's largest urban car free area, unique in Europe in remaining a sizable functioning city in the 21st century entirely without motorcars or trucks.

The classical Venetian boat is the gondola, although it is now mostly used for tourists, or for weddings, funerals, or other ceremonies. Most Venetians now travel by motorised waterbuses (vaporetti) which ply regular routes along the major canals and between the city's islands. The city also has many private boats. The only gondolas still in common use by Venetians are the traghetti, foot passenger ferries crossing the Grand Canal at certain points without bridges. Visitors can also take the watertaxis between areas of the city.