a former administrative region of the US, on the Isthmus of Panama around the Panama Canal: bordered on each side by the Republic of Panama, into which it was incorporated in 1979
Also called: Panama Canal Zone
Canal Zone in American English
a strip of land that extends 5 mi (8 km) on either side of the Panama Canal: the land was formerly under lease to the U.S., which governed it (1904-79); it was returned to Panama and the name abolished in 1979