One lane of traffic in each directions has been reopened on Wheelers Lane.
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The lanes were opened on Saturday after six weeks of full closure.
Western Plains Regional Council operations engineer Robert Flakelar said by utilising outside lanes, one lane of traffic will be open in each direction while construction work continues.
"The next stage will include the construction of centre medians and related infrastructure and will continue until late August," Mr Flakelar said.
"Pedestrian access will be retained for the remainder of the project with a pedestrian maze at the level crossing itself now fully operational."
The original construction schedule was altered after significant community concerns were brought to council's attention.
East Bake Bakery owner Bart Shanks was one of the biggest campaigners against the closure.
Initially the road was to be fully closed for four months while the work was completed, but after Mr Shanks advocated on behalf of the business community in the vicinity of the crossing, it was reduced to six weeks.
Three weeks into the roadworks Mr Shanks said his business had a 30 per cent downturn. The upgrade to Wheelers Lane includes road-widening, new concrete footpaths, an on road cycleway, centre medians and street lighting improvements.
Mr Flakelar said it was a priority section of Dubbo's road infrastructure and the widening of Wheelers lane and upgrading of the level crossing between Birch Avenue and Douglas Mawson Road would create a four-lane divided carriageway over the crossing.