New pedestrian-operated signals will soon be installed on High Street in Kangaroo Flat, near St Monica's Primary School.
The $500,000 project is jointly funded by the Australian and Victorian governments on an 80:20 basis.
Deputy Prime Minister and Minister for Infrastructure, Transport and Regional Development Barnaby Joyce said the signals would help to keep some of Bendigo's most vulnerable road users safe.
"The new signals will increase safety for pedestrians crossing High Street, especially for students and families accessing St Monica's Primary School," the Deputy Prime Minister said.
"Work to construct the new crossing will start on 5 January 2022 and will take approximately six weeks to complete, weather permitting."
Victorian Minister for Roads and Road Safety Ben Carroll said the signals are being installed thanks to funding via the Australian and Victorian governments' joint Targeted Road Safety Works program.
"We know pedestrians and children are some of our most vulnerable road users, and these new signals will make crossing the road safer for everyone," Minister Carroll said.
"This jointly funded program is dedicating $97.2 million to deliver infrastructure projects and urgent road safety improvements across Victoria."
Nationals Senator for Victoria Bridget McKenzie said the Australian Government was investing a record $110 billion in infrastructure projects across the nation.
"That includes regional Victoria, ensuring the needs of our communities are funded and delivered," she said.
"Projects such as this one boost pedestrian safety, while helping to secure economic recovery from COVID-19 in the regions."
Victorian Member for Bendigo West Maree Edwards said the new signals would be installed close to the existing school crossing, and there would be changes to traffic conditions during construction.
"Traffic management will be in place during construction, with speed on High Street reduced to 40 kilometres per hour," Ms Edwards said.
"Please drive to conditions for the safety of workers, other drivers, cyclists and pedestrians."
There will be no right turns permitted into Station Street from High Street during construction. A signed detour will be in place via Carpenter Street.
There will also be no left turn into Station Street for traffic travelling south along High Street. Instead, the detour will be via Camp Street to access St Monica's Primary School.