Explanation:

Venice, located in Italy, is known as the "City of Canals" due to its unique urban layout comprising interconnected waterways, canals, and bridges that form the primary means of transportation throughout the city. Built on a series of 118 small islands in the Venetian Lagoon along the Adriatic Sea, Venice's historic center is a UNESCO World Heritage site renowned for its architectural splendor, art, and cultural significance. The city's canals, including the Grand Canal, serve as the main thoroughfares for water taxis, gondolas, and traditional Venetian boats, replacing roads for vehicular traffic. Venice's canal network dates back to the Middle Ages and Renaissance periods when the city emerged as a major maritime power and trading hub in Europe. The canals of Venice are lined with ancient palaces, churches, and public buildings that reflect the city's prosperity and artistic achievements during its golden age. The nickname "City of Canals" celebrates Venice's distinctive urban landscape and its enduring allure as a romantic and historic destination known for its waterborne transportation and architectural marvels.