Venetians woke up on Sunday morning to an unusual sight as water in the city's central waterway appeared to have turned fluorescent green.
Local authorities have collected water samples and opened an urgent investigation.
Speculation is rife as to what might have caused the water around the famous Rialto Bridge to change colour.
Theories range from the release of dye to a protest by environmental activists.
Italian media reported that local police were examining CCTV to determine whether the release might have been a stunt to coincide with the Volgalonga regatta taking place this weekend.
Many social media users said the images coming out of Venice were remindful of the 1968 stunt by Argentine artist Nicolás García Uriburu, who dyed the waters of the Grand Canal green in order to raise awareness of ecological issues.
