Does anyone know of any sci-fi stories that use the romantic
Lowellian idea of Martian canals and a civilization on the planet?

The closest I can think of is Bradbury's Martian Chronicles, however
I don't think it uses much of a Lowellian aura. Then of course
there's War of the Worlds, but to my knowledge none of it takes
place on Mars.

FWIW, these are some cool images of "what might have been":
http://www.sciencemuseum.org.uk/on-l...s/Astc0003.jpg
http://www.star.le.ac.uk/edu/planets/mars_canals.gif
http://www.resa.net/nasa/images/life...s%20canali.jpg