Works are about to start to complete the intersection of Rosser Boulevard, Coombes Road and the Surf Coast Highway in Torquay.
The upgrade will include the extension of Rosser Boulevard from the Quay 2 residential development to connect with the highway as well as the installation of traffic lights, street lighting, bicycle lanes, bus stop and pedestrian connections.
"This important project has been in the pipeline for several years and will improve traffic flow and safety for all road users. It will create a new access point to the Surf Coast Highway, which will help ease the traffic load on Merrijig Drive," Surf Coast Shire Mayor Cr Liz Pattison said.
"I know many students walk and ride to school along the highway track, so this will also create a signalised crossing point on Coombes Road."
Works will start on 15 May and are expected to be completed by December 2023.
The Surf Coast Highway will remain open with lane closures at times and a temporary 40km p/h speed limit in place.
Coombes Road is currently closed between Surf Coast Highway and Messmate Road - but open to local traffic only - to allow for Barwon Water pipeline upgrade works. This road closure will remain in place until December, with detours in place.
"By coinciding Council's intersection works with Barwon Water's pipeline works, it will help minimise the traffic impacts to residents," Mayor Pattison said.
Coombes Road access to and from the Surf Coast Highway will be closed to all traffic until December.
Residential and emergency vehicle access will be maintained at all times.