This one is better as it shows the pumps: https://www.youtube.com/watch?v=jh79YSCC8mM
Of course, during Project Plowshare, one proposal was to dig a new sea-level canal through Nicaragua with nuclear weapons instead of TNT.
o To go up you sail in, close the gate behind you, and let water into the lock from the higher level until you can open that gate and sail out
o To go down you sail in, close the gate behind you, and let water out until it has dropped to the lower level and you can open that gate and sail out
At, least, this is how normal canals/locks work.
What's special about the Panana canal ?
With the Panama canal, the crucial difference is that a large part of the canal is Lake Gatún, a freshwater lake, so they can't pump water up to avoid overdrawing the water supply
ok, what about the highest level of the lock?
In a normal lock system (e.g. typical British canal) the water flow is from the high end of the entire set of locks to the low end, so gravity does the job, and the water supply at the high end is replenished by whatever it is connected to (river or lake).
This was surprising to me, as I'd always kind of assumed that the Panama canal would use ocean water for the locks. It turns out that the locks don't pump water at all, they just use gravity, necessitating reservoirs of fresh water.
See a longer discussion here: https://news.ycombinator.com/item?id=37055679