Another intersection is to be upgraded to ensure greater visibility for motorists.
Cemetery Rd, which links the town's industrial area with State Highway 6, had seen increasing amounts of traffic in recent years and it was expected to rise further, Central Otago District Council roading manager Julie Muir told the roading committee this week.
A consultant's report showed visibility at the intersection was far below the 240m minimum for a 100kmh area.
The New Zealand Transport Agency has responsibility for state highway intersections.
The council roading committee supported a fully upgraded intersection which would accommodate normal as well as heavy vehicles.
A significant proportion of the vehicles that use the intersection are classed as heavy vehicles.
The upgrade was estimated to cost almost $60,000.
Although the road is sealed at either end, a 343m section near the intersection is unsealed.
The sealing of that section, at an estimated cost of $116,600, will be included in the council's minor improvement works programme.