The settlement under the name of Kiliwhimin was renamed Fort Augustus. The settlement got its name from the fortress Fort Augustus. This was built between 1729 and 1742 at the meeting point of the military roads through the Great Glen and over the Corrieyairack Pass. It was named after William Augustus, Duke of Cumberland, the "Butcher of Culloden".

Today Fort Augustus benefits greatly from the many tourists who pass through the town from the south on their way to Loch Ness.

The "Caledonian Canal" connects the Scottish east coast at Inverness with the west coast at Corpach. The canal was constructed in the early nineteenth century by Scottish engineer Thomas Telford. Only about a third of the total length of the canal was created artificially, otherwise natural waters were used. The canal is 97 kilometres long.

The canal passes through Fort Augustus in a series of locks stepping down to Loch Ness.