The Canal [[1]], as the areas irrigated by the new canals were called, was settled by peasants.

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answer is COLONIES.

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Detailed Solution

Peasants settled the canal colonies in the areas irrigated by the new canals.
In the eighteenth century, the world underwent significant change. Complex interactions between economic, political, social, cultural, and technological variables changed societies and altered international relations. A global agricultural economy had developed by 1890, and intricate technological changes originated. West Punjab saw drastic upheavals as the British Indian government constructed an irrigation system in the region. The aim was to convert semi-desert wastelands into productive agricultural lands where wheat and cotton could be grown for export. Thus peasants from various parts of Punjab settled in the areas watered by the new canals, known as the Canal Colonies.

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