Captain Anderson ran excursion tours on Lake Washington for his entire career starting at least as early as his ownership of Quickstep in the 1890s. In June 1922, Anderson started a new excursion route. Atlanta ran two-hour tours from Leschi Park, through the Hiram Chittenden Locks into Puget Sound, finally docking in downtown Seattle at the foot of Marion Street. This route, "The Canal Tour", was a commercial success. He formed Anderson Water Tours Company in 1926 to exploit this and other tourism opportunities that were beyond the scope of his lease with King County.

The Canal Tour only operated in the pleasant summer months, typically starting in June and ending in September. In the summer of 1926, Atlanta sailed from Leschi Park at 11 a.m., and sailed back from Elliott Bay at 2:30 p.m. The fare was $1.50 per person. Some time in 1933 or 1934, Anderson purchased Vashona from Vashon Navigation Company. In the spring of 1935, Anderson sent Vashona to the shipyard for refurbishment. She emerged as Sightseer, a purpose-built tour boat with seating for 300 passengers. The new boat took over the Canal Tour. Atlanta became a reserve boat available for special holiday events, and as a back-up, until she was returned to King County in November 1937. Sightseer ran this excursion every summer for the rest of Anderson's life.

In 1938 or 1939, Anderson purchased the steam yacht Mercer, which Anderson Water Tours used to run excursion trips around Mercer Island.

In June 1942, Harrie E. Tompkins, who took over management of Anderson Water Tours after Anderson's death, made the decision to suspend the tours for the duration of World War II. In fact, Anderson Water Tours never sailed again. In 1946, Emilie Anderson sold Sightseer to Gray Line Tours. On June 23, 1946, Gray Line Tours recommenced the Canal Tour that John Anderson pioneered decades earlier.