Work being undertaken on Frederick St was part of the planned upgrade to Dunedin’s centre city retail quarter.
A council spokesman said the street was now being partly dug up to create an "access chamber" which would allow contractors to line a historic brick barrel stormwater pipe.
The lining method was being used instead of completely replacing the old brick barrel pipes - which have historical significance.
"It is less disruptive, much quicker and more cost-effective than digging them up completely," the spokesman said.
Contractors would be pulling a lining through the existing pipe and expanding and curing it to create a "pipe within a pipe".
A large proportion of the work would be completed using remote-controlled tools in the pipes, so there would be minimal above-ground disruption - similar to the work happening on the George St Farmers block.
The work was expected to take three weeks to complete, and was pre-planned.
It comes after extensive work was done in June to the Great King St Dunedin Hospital block, between Hanover and Frederick St.
The original work included the replacement of old water supply and wastewater pipes, followed by new footpaths, streetlights and street furniture.
The work had been successful, the spokesman said.
