Funding has been approved for investigation work on the new Rotorua Eastern Arterial, Transport Minister Steven Joyce said today.
The new road will be a six kilometre bypass of SH30 to ease congestion.
Mr Joyce said it would promote economic growth, aid urban development and improve safety.
"In addition it provides an important link between the city and key infrastructure including Rotorua International Airport, the Port of Tauranga and the wider Bay of Plenty region," he said.
"The Government is committed to lifting productivity, creating jobs and helping get our goods to market faster."
