The Government is investing $6.8 million to help upgrade the main road through Motueka with intersection improvements, cycle priority and pedestrian crossing signals.
The funding will come from the $3 billion set aside for infrastructure projects in the Government's COVID-19 Response and Recovery Fund.
"Motueka is a destination that becomes more and more popular every year," Damien O'Connor said.
"Pressure has been building on High Street for many years and locals have been frustrated by the lack of action. This is a good interim solution which will relieve some pressure while the long-term discussions about a bypass and second bridge continue.
"It's supported by most locals and will provide a more liveable town centre. Work will get under way as soon as Motueka's busy summer period eases in May next year."
Additional information
Projects are being funded as part of the infrastructure investments announced by Finance Minister Grant Robertson and Shane Jones on July 1 to kick-start the post COVID-19 rebuild by creating more than 20,000 jobs and unlocking more than $5 billion of projects up and down New Zealand.
The $50 billion COVID Response and Recovery Fund (CRRF) set out in Budget 2020 earmarked $3 billion for infrastructure projects. Ministers established the Infrastructure Reference Group (IRG) to work with local councils and businesses to identify a pipeline of projects to support the economy during the COVID-19 rebuild. Cabinet then decided the key sectors and regional breakdown of funds with more than 150 projects worth $2.6 billion being approved in principle.
All approvals are in principle and subject to contract negotiations. Investment values are also subject to change.