Austin, MarkJohnson, JohnTraditional approaches to the formal analysis of canal system operations focus on performance. However, now that canal system operations are moving toward increased use of automation in their day-to-day operations, there is a strong need for formal analysis of system functionality with respect to correctness of operations. This report describes a compositional approach to the multi-level behavior modeling and formal validation of canal system operations with hierarchies and networks of finite state automata. Models and specifications of behavior are formally designed as labeled transition systems. To avoid the well-known state explosion problem, we develop a new procedure for viewpoint-action-process traceability, thereby allowing parts of a problem not relevant to a specific decision to be removed from consideration. Key features of the methodology are illustrated through development of behavior models and validation procedures for lockset- and system-level concerns in the Panama Canal System.en-USbehavior modelingautomataprocess modelingcanal systemTechnical Report