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Major work to upgrade the road, stormwater and water pipes in Cemetery Rd in East Taieri is set to begin on Monday and continue until February 2022.
Dunedin City Council group manager transport Jeanine Benson said the road provided access to a school, church, youth hub, dog park, cemetery, future retirement village and rural lifestyle blocks, but was in poor condition.
"It’s already in need of work but an expected increase in traffic from new developments has made its upgrade even more necessary.
"Without upgrading, the existing infrastructure would not be able to meet future needs," Ms Benson said.
Work will include installing two raised crossings, a shared path on one side and a 1m-2m wide footpath on some sections of the other side, new kerb and channelling and lighting.
A larger water main would be installed to accommodate the increased demand.
New stormwater pipes would be installed to tie in with changes to the road layout.
Vehicle access would be maintained during the work, but there might be delays during some phases of construction, Ms Benson said.
The project would cost about $2.7 million and was co-funded by developer contributions.