The proposed reduction from 100kmh to 80kmh would apply between Brighton and Taieri Mouth on 13km of Taieri Mouth Rd.
The Dunedin City Council is to carry out consultation about the proposal early next year.
Reasons for the proposal included that various points of beach access had poor visibility of oncoming traffic, there were blind corners from Kuri Bush residential properties and high numbers of tourists used the road in summer.
The road was consistent with many typical coastal roads, featuring frequent changes in direction that required motorists to slow down and navigate with caution, the council said.
A section of the road was proposed for a speed limit reduction in 2023, but it could not be considered further after a change of government.
At the time, 20 Kuri Bush residents signed a joint submission requesting an 80kmh limit on a 3km section, citing safety concerns.
It was signalled at a city council meeting last week the neighbouring Clutha District Council would have input into the process. The Taieri Mouth village is in the Clutha district.
The city council’s consultation process is to run for six weeks.
Meanwhile, NZ Transport Agency Waka Kotahi is proposing changes to speed limits in North Otago and Central Otago.
A new intersection speed zone with electronic signs is proposed for State Highway 1 at Hillgrove Rd, Moeraki, and a speed adjustment could be brought in for the existing intersection zone at Moeraki Boulders Rd.
Both zones would drop the speed limit from 100kmh to 60kmh when a turning vehicle was detected, the agency said.
The area has a history of serious crashes.
At Hampden, 50kmh and 70kmh zones are proposed on SH1 — each 10kmh lower than existing limits.
In Central Otago, an extension of an 80kmh zone for SH8 is proposed at the southern end of Ettrick.
Ettrick resident Heather Morris drew attention earlier this year to the dangers posed by motorists accelerating out of the 80kmh zone.
‘‘It’s like a drag strip.’’
The transport agency’s consultation is open until January 27 next year.
