A 840m sewer pipe will be installed on the Sunshine Bay main, from the YHA Hostel to the Kathmandu retail store, in a $1.3 million upgrade budgeted for in the annual plan.
Lake Esplanade will not be closed, as it is wider for traffic.
The works are scheduled to begin on May 18 and finish on May 31, weather permitting.
Project team Aurecon NZ Ltd and contractor Fulton Hogan Ltd staff would be working from 7.30am to 6pm daily.
Kathmandu assistant manager Derek Hibberd said unless the works disrupted foot traffic, the upgrade would not affect trade, "and it sounds like it won't, from what [council's] told us".
Simond Silver owner Simond Chee received a letter of information from QLDC last week and had signed up to the email database.
"[The upgrade is] is good for the whole community and it's the right time to do it," Mr Chee said.
"Disruption might affect business one way or another, but if they really have to do it, they really have to do it. If they did it in November, I'd be very mad at it."
Earth Wind Company Ltd manager Aki Shimizu said he received information and wanted to know what the council would do to mitigate noise and dust from the works.
Real Journeys national sales and marketing manager Robyn Jebson said now was the best time of the year.
"We've very appreciative they've chosen to upgrade in May rather than the peak ski season or summer months," she said.
"It's really important Queenstown has good infrastructure such as a sewerage system and we recognise upgrading at times will be needed."
Engineering services general manager Mark Kunath told the utilities committee this week refuse collection and delivery vehicles would need to be accommodated but the other traffic would need to be minimised.
