The most common and most likely answer to this crossword clue is the 9 letter word AMSTERDAM
I've seen this crossword clue in The Guardian
A
M
S
T
E
R
D
A
M
More clues leading to the result AMSTERDAM
- Star made off with millions in capital
- Port road morning mist envelops
- City Road swathed in mist after morning
- First man to frame recycling terms for continental city
- Trams made to crash in European capital
- Flowing stream meets obstruction in its canals?
- McEwan novel, Decapitated Pet Cuckoo’s Upset
- Cockney pet mad about city
- Trams made to run here?
- Made smart move into European capital
Buddy explains!

The straight part
We know that "in its canals?" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case in its canals? = amsterdam.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.