The best way for Panama visitors to see the canal is to literally get in the middle of it—on a transit or partial transit boat tour at sea level. You can experience the sensation of cruising directly through the canal, watching as the locks fill with water and your ship passes steadily through the three sets of double locks(the Miraflores and Pedro Miguel locks on the Pacific side, plus the Gatún locks on the Atlantic side).
Between the locks is the artificial Gatún Lake (Lago Gatún), created by the Gatún Dam across the Chagres River (Rio Chagres), and the Culebra Cut, the narrowest section of the canal, hewn out of the mountains. It's also possible to see the locks by train, as you pass by the banks and through pristine rain forest en route to Gatún.
Most full- and half-day tours include roundtrip transportation and a visit to the Miraflores Locks Visitor Center, which tells the story of this incredible engineering feat through exhibits. The center's restaurant, theater, and terraced decks also provide comfortable vantage points for watching ships pass through. You can also visit the Gatún locks (about an hour from Panama City) to learn about the Panama Canal expansion.