A section of Malaghans Rd prone to frost and ice and minor crashes will be refurbished.
The road was identified for work in the Queenstown Lakes District Council's capital works roading programme 2010-11.
Three other sites have undergone rehabilitation in the past three years.
The next stage was approved by the council utilities committee last month and will result in the section east of Middlerigg Lane, which includes a reverse bend, being resealed, widened, and super-elevated.
Queenstown Lakes District Council capital works manager Ken Gousmett said there had been seven reported crashes on the section of road between January 2005 and December 2009, and it was likely there were several unreported.
Six of the reported crashes resulted in minor injury and one was non-injury.
The majority involved loss of control in icy or frosty conditions.
All of them occurred in June and July when the road was generally shaded by mountains to the north.
The refurbishments would "provide a much improved ride", Mr Gousmett said.
"In addition, the pavement and drainage will be rebuilt, thereby improving durability. These will combine to improve safety."
However, in order to complete the work, funding from other projects would be required.
Work was estimated to cost about $920,000, but an insufficient budget meant $360,000 would yet need to be sourced.
The funding shortfall could be reduced once a design was confirmed, and a work time-line established, he said.
The council viewed the work as significant because the road "can catch people out and requires care at the moment".
