Work will start next month on a permanent roundabout at the entrance to Tallwoods Village.
The existing roundabout, at the intersection of Black Head Road and The Boulevard, was installed as a temporary fixture by the developer of Hallidays Point Caravan Park and will now be replaced.
The newly roundabout has been designed to cater for projected traffic volumes and provides a more aesthetically pleasing welcome to the area, MidCoast Council's Rhett Pattison said.
Works will continue through to early December, weather-permitting.
Meanwhile council engineers are preparing to repair a culvert in Grangewood Avenue, Tallwoods, starting next week.
Mr Pattison said damage caused by flooding has seen local traffic reduced to a single lane. A new stormwater drainage system will be installed and the road will be reconstructed and sealed.
As a result, Grangewood Avenue will be closed to all traffic for up to a four week period, weather permitting. A detour via The Boulevard, Hilltop Parkway, Tallwood Dr and The Pulpit will be in place and clearly signposted.
"(This) is an opportunity for us to design a new drainage system that will reduce the risk of future flooding and damage in the area."