During the Third Canal Era, there were three lighthouses and three additional lights at Port Colborne marking the entrance to the harbour and canal.

In 1877, as construction of the Third Welland Canal was already underway, it was decided to replace the 1850 Port Colborne west pier lighthouse and east pier light, by then in need of serious repair due to their poor condition. The new main lighthouse on the west pier was completed in 1879, along with a new range light on the east pier.

In 1889, after a storm severely damaged the lighthouse and the east range light, a new lighthouse on the west pier was built in 1890. On the east side of the harbour, a range light was located near Fares St. and Lake Rd.

In 1903, as part of the major harbour improvements at Gravelly Bay, a large new concrete west breakwater was built much further out in the bay to provide additional protection for the harbour and canal entrance. A new main lighthouse was built at the eastern end of this west breakwater. (This would later be referred to as the inner lighthouse after the construction of a new lighthouse further out in Gravelly Bay.) At the same time another range light was built on the new east breakwater.

In 1904, a mechanically-operated foghorn was installed at the new west breakwater lighthouse.