The Panama Canal Zone apart from the canal was mainly employed for military objectives. This is notable as it is the native place for many notable zonians such as Richard Prince, Rod Carew, US senator John McCain and Kenneth Bancroft Clark. The biggest US army unit had its base in the Canal Zone and also was a combination of mixed parachute infantry and light infantry unit which was later dispersed in the Clinton reign.

Panama Canal Company took charge of the operations in the canal after 1979. The government took charge of the Canal Zone and was considered to be between a socialist government and a colonial company enclave. As everyone worked for the company or the government, there were no independent stores. A separate police force with courts and judges existed for the Canal Zone. The governor of the Panama Canal Zone was the head of the company. None of the residents had their own home as they were allotted houses on rent. The Panama Canal Zone came to an end on October 1, 1979 in agreement with the Torrijos carter treaties.