In a statement, Queenstown Lakes mayor-elect Jim Boult said Fulton Hogan had been warded the $21.8 million contract to construct the road, formally known as Hawthorne Dr, in two stages.
The first stage, connecting Glenda Dr to Remarkables Park was expected to be open for motorists before next winter, Mr Boult said.
The second stage will connect a new internal roundabout, near the under-construction Pak'n Save, with Glenda Drive.
Mr Boult said he was "delighted" to see such an important project progress.
"This has been a long time in the making and it’s great to see the contract awarded so work can begin right away.
"Being able to open up a transport link before winter next year will be of huge benefit to locals and visitors alike.”
The project will be primarily funded by the Queenstown Lakes District Council, with support from the New Zealand Transport Agency.
NZTA acting southern regional director said the link was an ''essential part'' of a wider programme of works to manage the effects of the Wakatipu's "unprecedented growth''.
"It has been a very positive experience working closely with the team at Queenstown Lakes District Council to bring this project to the starting gates.”
