BACKGROUND & OBJECTIVES: A new irrigation canal system is under construction in Dhenkanal district of Odisha, to increase the production of rice crop and thereby improve the living standard of farmers in the project area. Construction of canal may increase the transmission of malaria by creating vector breeding habitats. Knowledge about bionomics of vectors will support authorities for appropriate management of the disease in a changing ecological set up. The aim of this study was to assess the malaria transmission in the bank of the canal area under construction. METHODS: The entomological survey was carried out in three seasons, winter, summer and rainy during the period November 2008-October 2010 in the study area. Adult mosquitoes were collected by using suction tubes and flash lights. Mosquito species identification was done by using standard keys, separated according to abdominal conditions and were kept in an isopropanol for further molecular analysis of sibling species, presence of sporozoites and human blood meal. Larvae were collected by dippers and reared in the laboratory, and the emerged adults were identified to species. The epidemiology of malaria was evaluated from the data collected by the State Health Department. Insecticide succeptibility test was done by WHO method. RESULTS: The adult mosquito collection from the study area showed the prevalence of 14 species belonging to three genera, i.e. Anopheles, Culex and Aedes. The per man hour densities (PMHD) of An. culicifacies were 3.8, 1.4, 4.8; that of An. annularis were 2.1, 1, 2.1; and that of An. fluviatilis were 1.4, 0.3, 0.6 during winter, summer and rainy seasons respectively. Sibling species identified were: An. culicifacies A, B, C and D, An. annularis A and An. fluviatilis S. Sporozoite rates of An. culicifacies A and C were 1.1 and 0.5% respectively and that of An. annularis A was 2% (reported for the first time in the state). Both the vectors (An. culicifacies and An. annularis) showed resistance to DDT and malathion and were susceptible to deltamethrin, whereas An. fluviatilis was susceptible to all the three insecticides tested. INTERPRETATION & CONCLUSION: Anopheles culicifacies, An. fluviatilis and An. annularis were prevalent in all the three seasons. The artificial ponds and seepage pools of canal are the major breeding sites for An. culicifacies and An. annularis. Thus, in the canal command area, control of malaria transmission requires use of insecticide-treated bednets and use of biolarvicides (seepage pools) and larvivorous fish (artificial ponds) wherever feasible.