The attractive town of Ismailia, headquarters of the Suez Canal Authority, a pilot station and a traffic junction half way between Port Said and Suez, lies on the north side of Lake Timsah ("Crocodile Lake"). A town of shady avenues, flower lined promenades and luxuriant parks and gardens, it was founded by Lesseps in 1863 at the end of the
Ismailia Canal (Freshwater Canal, constructed 1858-63 to provide a supply of drinking water) as the main center of operations during the construction of the Suez Canal and named after Khedive Ismail. After the completion of the canal the town lost its importance but later enjoyed a revival as a British garrison town. In 1956, and again in 1967, Ismailia suffered severe damage during the military operations of those years, when most of the population had to be evacuated. The destruction caused by these wars has only partly been made good.
The town, laid out on a regular plan, lies to the north of the Ismailia Canal, which, accompanied by the Mohammed Ali Quay, extends along the north side of the harbor with its port installations, turns down its east side and, after a lock gate opposite the offices of the Suez Canal Authority, flows into Lake Timsah.