Four of the five government-funded bays will not require resource consent, with work expected to begin before Christmas and to finish in February.
Queenstown Lakes District Council acting capital works manager Steve Hewland said the plans were prompted by concerns raised by members of the community over unsafe passing.
"It's just recognised that out there, with the type of the road being coastal and mountainous, that there weren't many opportunities for safe passing, which is a real issue."
He said the volume of traffic was "nowhere near" high enough to meet the government's funding rules for passing lanes, but the bays were a perfect solution.
Because of the topography, four of the bays will be on the way to Glenorchy and one on the way backThe QLDC has filed for resource consent for the fifth, at the Twenty Five Mile Creek Bridge, which requires a 70m-long reinforced wall up to 4.5m high.
Engineering consultant MWH New Zealand was brought in by the council to investigate possible locations for the passing bays.
In the application, MWH said the extra bay was necessary for "more efficient passage of traffic ... where passing opportunities are limited".
The chosen site climbs steadily uphill from the lake, making it an important spot to address traffic safety issues.
Approval has been gained from the Department of Conservation, Fish and Game, Kai Tahu Ki Otago Ltd and Te Ao Marama, with Lakes Environmental requesting written approval from Land Information New Zealand and Te Runanga o Ngai Tahu.
If granted consent, construction of the fifth bay was scheduled to start in January 2012, and would take about one month.
The road provides entry to Paradise and the start of the Routeburn, Greenstone, Caples, Dart and Rees tracks.
