Organisers said that the wide range of entertainment and stalls on offer helped bring in record numbers.
Running on Saturday (October 5) and Sunday (October 6), people of all ages made their way down to the canal for the festivities.
Floating traders were set up along the canal, and Castle Quay and the General Foods Waterside Bar played host to various activities.
Tooley’s Boatyard was busy with live performances, screenings and crafts taking place on the Village Butty floating venue, which was housed inside the historic dry dock.
The Mill Arts Centre hosted performances and the Adderbury Morris Men made sporadic appearances throughout Saturday.
A spokesperson for the town council said: “The Canal Festival was a fantastic opportunity for residents to learn about the town’s fascinating history, as well as experience talent exhibited by the performers at the event.”
Floating traders were set up along the canal, and Castle Quay and the General Foods Waterside Bar played host to various activities.