Khlong Bang Lamphu was named after the Banglamphu area, which in turn was named after the huge Lamphu tree that used to grow there. The canal was dug in 1792, during the reign of King Rama I. A workforce of 10,000 Khmer labourers were employed for the job.
The part of Khlong Bang Lamphu near Phra Sumen Fort is also known as Khlong Pom, or fort canal.