The Grand Canal has been fundamental in supporting Chinese industrialization, as evidenced in the great changes witnessed across industrial lands, but few studies have approached this issue from a cultural perspective. After an extensive industrial recession in the early 21st century, canal cities like Hangzhou have seen changes in the cultural functions of industrial lands, relocating, transforming, and demolishing factories and other constructions to develop new cultural spaces and products. A deep analysis of these cultural changes is, therefore, quite helpful to appreciate the features of and reasons for Chinese national policy setting in the cultural sections of the Grand Canal, such as the UNESCO World Heritage-recognized purpose of the Grand Canal, etc. Therefore, by focusing on the Hangzhou section of the Canal, and via the integration of high-resolution Google Earth images with a 1.5 spatial resolution, we dynamically monitored the land use of the 10 specifically selected industrial lands and interpretated the various uses of the areas from 2000 to 2020. Then, with archival data from 1950 to 2024 and fieldwork conducted over 1 year, and in consultation with major experts, we designed a mark sheet with factors and scores to comprehensively assess cultural changes in those lands. Consequently, the history of industrialization along the Hangzhou section was thoroughly analyzed with these investigations and data, and the reasons for and influence of cultural changes were presented in detail; subsequently, the outstanding problems were addressed, and suggestions were offered. This study contributes to a better understanding of Chinese cultural policy regarding cities along the Canal after the industrial decline, especially the critical implication of cultural loss within these cities. In addition, it also provides novel perspectives for cultural research, heritage conservation, and urban planning of canals or waterfront spaces for world heritage.