You heard right. I live in that area and the canal towpath is beautiful. If you are riding a road bike, however, you may want to avoid the towpath and ride River Rd on the Pennsylvania side of the river. You can get the train (NJTransit) from NYC to Trenton and make your way from there. That entire area of Mercer and Hunterdon Counties is a wonderful area for riding. Let me know if you ever get down here. I could use a riding buddy.
Brian
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“A good teacher protects his pupils from his own influence. ”
― Bruce Lee