As the city grew northward in the colonial era the Collect became an important source of fresh water. As the growth continued into the late 18th century it became polluted by seepage from privies and run-off from small industries, including tanneries, slaughterhouses and breweries.
Due to the extreme pollution, which had been implicated in small scale outbreaks of cholera and typhus, the Collect was condemned. A canal was dug to both the Hudson and East rivers to drain the pond, and it was filled in. Present day Canal Street was built over the canal. It would be several decades before New York City obtained a new, plentiful supply of fresh water from the Croton Aqueduct. The Five Points neighborhood, a notorious slum, developed just off the former eastern bank of the Collect and owed its existence in some measure to the poor landfill job which created swampy, mosquito ridden conditions on land that had originally attracted more well-to-do residents.