I grew up in a house next to a canal. It was fantastic. I am extremely good in a kayak which you would not expect if you saw me.
When we moved into the house, the previous owners had left an old kayak (they were called canoes back then) and me and my siblings taught ourselves.
Our house was actually lower than the canal, but there were never any problems with 'leaks' - our garden wasn't any more wet than anyone's who didn't live by a canal. Possibly just more lovely and green!
You do get walkers along the towpath, but you get used to that, and it's not a constant stream by any means. We used to get really excited if we heard a canal boat engine and we'd rush up the garden, through the gate, and stand on the towpath waving as they went past.
Our fence wasn't a proper fence initially - just a load of bushes - so when we first lived there, people's dogs would occasionally wander into our garden, but that was sorted eventually with proper fencing.
I would absolutely love to live near a canal again. It keeps you so in tune with the seasons too - frozen in the winter, watching for frogspawn in early spring, ducklings later, etc etc. Just lovely.