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Board chairwoman Sarah Nitis, speaking at a board meeting in Mosgiel last week, asked agency Coastal Otago maintenance contract manager Nick Rodger if State Highway 87 "between Nellies Wine Bar & Restaurant and Mosgiel Police Station is up for a reseal''.
If a reseal was pending, the road needed regular maintenance, as it "failed on a daily basis'', Mrs Nitis said.
Mr Rodger said the agency was finalising plans for work on Gordon Rd.
"We are well aware of the state of Mosgiel - it is not a cheap fix.''
The work would probably involve "quite a large dig-out'' and structural asphalt would be used ... "which will fix it once and for all''.
Similar work in Oamaru cost about $300,000 to treat a 100m section of road, he said.
"If you think how long the main street of Mosgiel is - it is going to cost millions.''
The work was on the agency's programme for next year, he said.
"Mosgiel is the last big asphalt job left on the network.''
Community board members, Mosgiel retailers and Dunedin City Council staff would be consulted on how the project was managed, he said.
He assured Mrs Nitis Gordon Rd would be maintained in the interim but there was a resistance against spending too much money on temporary treatments "when we know we are going to go in and blitz the entire area''.