Krung Thep used to be known as the Venice of the East, but many of the klongs (canals) that once distinguished this area have been paved over. Several klongs remain, though, and traveling along these waterways is one of the delights of Bangkok. They have been cleaned up in the last decade, and the water is no longer so black and smelly, especially on the Thonburi side. In the longtail boats and ferries that ply the Chao Phraya River, not only do you beat the stalled traffic, but you get to see houses on stilts, women washing clothing, and kids jumping in with a splash. A popular trip to the Royal Barge Museum, and the Khoo Wiang Floating Market, starts at the Chang Pier on the Chao Phraya River and travels along Klong Bangkok Noi and Klong Bangkok Yai.
A fun introduction to the river -- and Bangkok for that matter -- can be bought with a Chao Phraya Tourist Boat day pass. They are a bargain at B70 and good for the whole day. One advantage of the tourist boat is while traveling from place to place there's a running commentary in English about the historical sights along the river and how to visit them. Included with the tour is a map of the river with its piers marked, along with the Skytrain route. A small booklet of river-area tourist sights attached to the map is also very helpful. The tourist boat starts at the pier under Saphan Taksin Skytrain station, but you can pick it up at any of the piers where it stops, and you can get on and off as many times and places as you want.
A pricier option is hiring a private boat to take you through the canals; tours usually run about two hours, stop at Wat Arun and/or other wats along the canal as well as the snake farm, and cost about B600 per boat.
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