The study determined the object to explore the dynamics of change, occurred due to the establishment of canal irrigation under colonial administration. The research work has suggested the shift in patterns of agriculture under the scheme of settlement along with a new irrigation system. The additional trade pattern was based upon the exchange of raw material with the finished goods from abroad, particularly from the United Kingdom, which also drove the new phase of social development in the lives of the people of this region. In the Canal Colonies in British Punjab, the British government tried its level best to increase the production of crops to fulfil the gap between supply and demand. The conflict arose between the past and present dominant classes. The study also emphasized its basic objective to explore the ratio of development in the District Multan due to the establishment of the Sidhnai Canal Colony. The district remained prominent always in the past and even under British rule just due to its central geographical position. The perennial Canal system and the scheme of Sidhnai Canal Colony changed the whole landscape and economy of the Multan District, which had a far-reaching impact on the lives of the people of this region.