New Zealand Transport Agency Central Otago manager John Jarvis said work began yesterday on the $28,000 project and it would take two weeks to complete.
St Gerard's acting board of trustees chairman, David Kys, said the wider school community was pleased to hear of the crossing.
"Any pedestrian crossing can only improve safety and this one will benefit our school, the Terrace School and pupils from the [Dunstan] high school as well. It's a busy road and a lot of people cross there," he said.
St Gerard's principal Trina Eastwood also welcomed the news.
"The school parents and locals are pretty good about being careful driving through this area, but drivers from outside don't know there's a school and a rest-home on opposite sides of the road."
Mr Jarvis said the crossing was part of an ongoing programme of safety improvements on Central Otago state highways.
New lighting will also be added to improve the visibility of the crossing.
