Lake or canal (4)
I believe the answer is:
erie
I believe this is a double definition.
'lake' is the first definition.
(Lake Erie is one of the Canadian/US 'Great Lakes')
'canal' is the second definition.
(I've seen this in another clue)
(Other definitions for erie that I've seen before include "North american lake sounds spooky" , "A Great American lake - sounds spooky" , "Buffalo's lake" , "Great lake in Eire" , "One of the Great Lakes" .)