The town's traffic flow has been the topic of debate with residents and retailers since the council opened public consultation in March, focusing on three main options - retaining the status quo, or shifting State Highway 1 to one of two existing heavy traffic bypasses.
Retailers warned that if the council moved State Highway 1, the town would suffer due to the reduction in passing trade.
The council's district assets committee met two weeks ago to discuss the traffic flows and make a recommendation to the council. The committee voted unanimously to recommend the council retain Balclutha's traffic flow after the majority of 769 submissions favoured doing so.
The recommendation followed two hearings where residents could speak to their submissions before the council.
An overwhelming majority, 95%, supported the status quo, retaining the two heavy-traffic bypasses and State Highway 1 passing through on Clyde St.
Two-thirds of the submissions were from Balclutha residents.
The council's decision at its meeting yesterday to keep the status quo has been well received, with retailers and residents now looking forward to upgrading the main street.
A $2.6 million main-street upgrade has been budgeted for the next year. It was planned for the 2011-12 year but was deferred while the council completed consultation with the community and New Zealand Transport Agency about the traffic flow.
The council also decided to make the trial intersection change at Ryrie, James and Clyde Sts permanent.
A trial closure of the northern end of Ryrie St has been in place since last October after it was dubbed "the most dangerous intersection in the district" by the police in a letter to the Clutha District Council.
Police said there were too many road rules for drivers to consider when negotiating the three-way intersection.
James St is also a heavy traffic bypass, running parallel to Balclutha's main business area before rejoining State Highway 1 at the intersection with Ryrie and Clyde Sts.
The council will consult the NZTA to gain its final approval and assistance for the physical closure and associated design, before making a letter drop about the final proposal to affected residents.