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In Paris, there are faubourgs that are hip, and others that are "très hip." Then there is "le plus hip" -- the emerging neighbourhood of Canal Saint-Martin.

The area, also known as the 10th arrondissement, is the latest to be settled by artists, designers and the cool set known here as "bobos," or bourgeois bohemians. Even savvy expats are taking note, as evidenced by a recent New York Times real-estate article lauding the quarter's beauty and relative thriftiness.

The definitive quality of Canal Saint-Martin is its local flavour. You won't see many guidebook-toting tourists or tour buses, which could be why Sarah Jessica Parker swooped in for dinner at the retro Hôtel du Nord while shooting Sex and the City.

The four-kilometre-long canal, running north from the River Seine at Place Bastille, is lined with centuries-old warehouses that are being converted into lofts and ateliers. Avant-garde galleries, bistros and boutiques have sprung up in a tangle of winding alleys, making this one of the edgiest parts of Paris -- what Saint Germain des Pres, Montmartre and the Marais have been in the past. The surroundings are funky, more homespun than chic, proof that one person's dive is another's budget-priced dream.

At this time of year, when Canadian travellers and Parisians alike look forward to spring, Canal Saint-Martin comes alive like a perennial garden of trendy pursuits. Sidewalk tables are already being set outside on sunny days -- on Café Prune's patio, for example, you can open your own oysters and chase them down with draft beer. Cyclists are taking to the paths that border the canal -- indeed, the fabulous Pink Flamingo pizzeria gives out balloons with each order and delivers your pie by bicycle to your picnic spot on the canal. The paths run through one long park, shaded by elegant century-old trees. Street musicians provide entertainment while mothers push prams past grand iron footbridges and locks, with the occasional barge or pleasure boat chugging past.

In a converted art-deco warehouse, a vast city-sponsored arts centre called Point Ephémère showcases dance, design, music, exhibitions and a very "in" bistro. Ballerina Nathalie Adam will dance to Anja Hempel's contemporary choreography on March 8. The light-filled landscapes of Isabelle Hayeur will be on display March 7 to 26, and the brick building will host a techno concert on March 17. A show of budding French fashion designers kicks off with a vernissage on March 27 and runs to April 2.

Cute shops along the canal sell offbeat clothes and amusing accessories. With its pink neon exterior and incense wafting through the doors, Antoine et Lili is both kitschy and cool. It's a hippie-chic, ethnic-inspired cult favourite where you might find a Peruvian tribal cap, a sarong from Borneo, a take-off of Jacob's coat-of-many-colours or a Paris Hilton-style ruffle confection of a dress. Accessories range from holistic chakra beads to Italianate garden pots, and a new Cantine serves mostly vegetarian nibbles such as grilled zucchini quiche or basil cannelloni.

Next door, designer Stanislasia Klein has created a romantic world in a building that dates to the 17th century. All white and lilac, Stella Cadente (Italian for "shooting star") is like a lacey, frilly boudoir. Here, Klein adorns her feminine and ethereal dresses and blouses with feathers, sequins and glitter.

A number of stylish yet reasonably priced hotels, such as the Mercure Terminus Est, are across the street from the Gare de l'Est train station, where subway and bus lines also converge. Built in 1912, the 200-room Mercure has a traditional exterior with French doors opening onto wrought-iron balconies mixed with the minimalist interior decor of a modern boutique hotel. Rooms have white-tiled bathrooms, dark wood desks and king-sized beds.

Canal Saint-Martin's reasonable prices lure Parisians en masse, especially on summer nights. Dinner at a humble place like La Marine, La Cambodge or La Madonnina runs from $25 to $45 a person, a draft beer costs $3 and a glass of house wine might be a modest $6, almost unheard of in the City of Light.

Prices are higher, and the quality and surroundings more refined, at such gourmet eateries as Le Verre Vole and Chez Michel. The latter is a Michelin-starred establishment serving dishes like veal kidney with walnuts, followed by tart cherries enveloped in almond milk ice.

A great way to soak up the neighbourhood's ambience is with a cruise of the canal from the Bastille north to La Villette. A guide tells of centuries of history that go back to Napoleon and Louis XVI, as well as anecdotes of the eccentricities of life along the canal: There was the time a fanatical Italian stole the Mona Lisa from the Louvre and hid it for two years in his canal-side apartment, in the hopes of repatriating Leonardo da Vinci's masterpiece.

The canal was built in the early 1800s for cargo ships to reach the Seine. For nearly 200 years, the area was a grimy, commercial sector and a working-class district with a seedy underbelly. Streetwalkers were de rigueur around the loading docks, and there was a gritty longshoremen's bar on every corner.

In the 1930s, La Java nightclub spearheaded the area's revitalization, hosting famous singers such as Edith Piaf and Maurice Chevalier. Today, La Java is a Latin dance club, and Chevalier is considered passé. But the tavern look has survived at popular hangouts like Hôtel du Nord, where the scene is smart and respectable, and cheap plonk has given way to Bordeaux.

Pack your bags

WHERE TO STAY

Hotel Mercure Terminus Est: 5 rue du 8 Mai 1945; 33 (1) 5526 0505; http://www.mercure.com. There's a bar, fitness room and sauna; a full buffet breakfast is included in some rates. Doubles from $150 in low season.

THINGS TO DO

Canauxrama: Port de l'Arsenal, 50 rue de la Bastille; 33 (1) 4239 1500; http://www.canauxrama.com. Runs cruises along Canal Saint-Martin at 9:45 a.m. or 2:30 p.m. $20 for adults, with discounts during the week for students, seniors and children.

Point Ephémère: 200 quai de Valmy; 33 (1) 4034 0258; http://www.pointephemere.org. A multicultural arts centre and pop music venue. Bistro serves lunch and supper Monday to Friday and brunch on weekends.

WHERE TO EAT AND DRINK

La Java: 105 rue de Faubourg du Temple; 33 (1) 4202 2052. This Latin dance club also has live or DJ music, Cuban jam sessions and salsa lessons. $15 admission includes a beer or cocktail.

Hôtel du Nord: 102 quai de Jemmapes; 33 (1) 4040 7878. A dark and intimate bar and bistro immortalized in a 1930s film noir by Marcel Carne. A pastis costs $4, a tulip of champagne is $10.

Chez Prune: 71 Quai de Valmy; 33 (1) 4241 3047. The epicentre of Canal Saint-Martin's day-time café life and after-dark bar beat. Noisy and crowded, it's best for oysters and a beer or an espresso at a sidewalk table.

Le Cambodge: 10 ave. Richerand; 33 (1) 4484 3770. Always has a line-up of hopefuls waiting for the first service at 8 p.m. Cambodian curry noodles, coconut shrimp, mint salad and beef with lemongrass are specialties. Dinner costs about $20 and take-out is available.

Pink Flamingo: 67 rue Bichat; 33 (1) 4202 3170. This pizzeria run by former Bostonian Jamie Young does dazzling international flavours from Cambodia, Cuba, India and Italy with organic ingredients. Pizzas cost $16 to 21.

La Madonnina: 10 rue Marie et Louise; 33 (1) 4201 2526. This tiny homespun trattoria serves basic Italian fare -- linguine with clams, rigatoni with ricotta and veal piccata, followed by tiramisu, espresso and limoncello liqueur. Dinner costs about $45, without wine.

WHERE TO SHOP

Antoine et Lili: 90 quai de Valmy; 33(1) 4037 4155; http://www.altribu.com. A hippie-chic, ethnic-inspired boutique.

Stella Cadente: 93 quai de Valmy; 33 (1) 4209 6660; http://www.stella-cadente.com. Feminine and ethereal dresses and blouses adorned with feathers, sequins and glitter.MORE INFORMATION

For more information on Paris's Canal Saint-Martin, visit: http://www.franceguide.com or http://www.parisinfo.com.