Detectives say someone called 911 from the 600 block of East Rose Street just after 4 pm on Thursday.
The canal flows through private property, and residents in the area say their neighbors spotted the body from their yard.
Investigators aren’t releasing the person’s name until family has been notified.
If you have any information about the case, call the Lebanon Police Department Information Line at: (541) 451-1751 ext. 4333.