A pedestrian crossing and improved cycling infrastructure were also part of the design plans.
Invercargill City Council Group manager infrastructure Erin Moogan said the intersection was a high crash area which needed to be improved.
"The intersection of Yarrow and Lindisfarne Sts has been identified as a high-risk area, with 18 crashes recorded in the past five years."
The road would remain open for the duration of the work to west-bound traffic on Yarrow St.
But temporary road closures will be in place for eastbound traffic on Yarrow and Lindisfarne Sts, between Mitchell and Baird Sts.
Detours will be in place and road users have been encouraged to plan ahead, and where possible, use Tay or St Andrew Sts.
The Yarrow St bus stop affected by the works has been temporarily relocated to Ritchie St.
But residents can flag a bus down anywhere on its route, provided it’s safe to stop.
Lindisfarne shopping centre parking has been relocated on Lindisfarne St off Mitchell St.
Construction on the new road layout is due to be completed by mid-June, weather dependent.
