Emergency services were called to Neptune's Staircase, at Banavie, south of Fort William in the Highlands, at around 2pm yesterday after reports of a woman spotted in the water.
Police, ambulance and coastguard went to the scene and the woman was recovered from the water. She was taken by ambulance to Belford Hospital in Fort William but died, Police Scotland said.
The woman's car was lifted out of the canal after it was found by police divers.
Police said in a statement: "Inquiries are ongoing to establish the circumstances surrounding the woman's death but there do not appear to be any suspicious circumstances.
"No further details are available until confirmation that all next of kin have been informed."
Earlier this week a man died after a taxi plunged into the water at Peterhead Harbour in Aberdeenshire.
Graeme Reid, 42, died after the vehicle he was in entered the water on Monday.