An 850m stretch of Arrowtown's Centennial Ave will be realigned from today, in response to "a history of accidents", Queenstown Lakes District Council roading manager Ian Marshall said.
The stretch of road between the Arrowtown Golf Course and McDonnell Rd was described as "a bit of an accident trap" in the past, due to its corners and dips, Mr Marshall said.
Construction of the road meant delays were inevitable on the route, which connected Arrowtown to State Highway 6.
"We will need to operate on a one-lane system, which means people should anticipate delays of up to five minutes on that stretch."
The project was expected to be finished by the end of March.
Motorists wishing to avoid delays should consider alternative routes to and from Arrowtown, via the Lake Hayes Road, he said.