Several bus stops could be upgraded in Dunedin to provide better shelter and seating and potentially facilities such as toilets, bike stands and lockers.
"Super stops" are proposed for South Dunedin, Mosgiel, Green Island and the Gardens area in North Dunedin.
Otago Regional Council transport interim manager Doug Rodgers said the council had indicative funding approval for the project.
It is estimated to be worth between $500,000 and $600,000.
"The next steps in this process will be to confirm feasibility and designs," Mr Rodgers said.
The project is one among many across New Zealand that would be part of the Government’s $350million package for 2022-24 aimed at providing more transport choices.
Another project in Dunedin would encourage children to walk or cycle to school.
Roading space could be re-allocated to establish a primary cycling network, which might include buffered cycle lanes and intersection changes.
Speed humps could be brought in or crossing points changed near 11 schools in the city.
Dunedin City Council infrastructure services committee chairman Jim O’Malley said
the funding should enable improved road safety in the city, while also helping to give people more sustainable travel choices for getting to and from school and around the city.
Cr O’Malley said the council looked forward to continued dialogue with Transport Minister Michael Wood and Waka Kotahi NZ Transport Agency, "as we work to realise some of our more ambitious sustainable transport projects".
Taieri MP Ingrid Leary said the package would help make Dunedin a more people-friendly place to live, work and visit.
"Delivering on these projects will help address our current infrastructure deficit while also meeting future needs caused by population growth and climate change," Ms Leary said.
Mr Rodgers said super stops could offer bus passengers a higher level of service.
They would be placed in suburban centres and in areas where buses converged from a variety of routes, or where passenger numbers were high.
Options being considered included improved seating and shelter, and nearby toilet, bike stands and locker facilities, he said.
Waka Kotahi urban mobility manager Kathryn King said the overall programme was designed to support councils in giving people more options in the way they travelled.
"The aim is to open up streets so everyone can get where they need to go in ways that are good for their health and the planet," she said.
Other councils in the South confirmed to go through to the next funding stage were Queenstown Lakes, Invercargill, Waitaki and Southland district.
Waka Kotahi will work with councils in a two-stage process.
Project proposals will be refined in the first stage and construction on some projects could start by June next year.
