The makeover of West Dubbo's Baird Street and Newell Highway intersection is underway following community advice to Transport for NSW.
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A new set of traffic lights will be installed and a dedicated right-turn lane built.
The revamped intersection is part of the state government's $20 million plan to upgrade and reduce traffic congestion at the nearby intersection of the Newell and Mitchell highways.
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In 2019 Transport NSW consulted the community on a concept design for the Newell and Mitchell highways intersection.
Feedback led to the modifying of the design of the Baird Street and Newell Highway intersection to allow right turns from the Newell Highway onto Baird Street and from Baird Street onto the Newell Highway towards Dubbo's central business district.
Work began this month on the Baird Street and Newell Highway intersection which Member for the Dubbo Electorate Dugald Saunders said would "play a part in reducing congestion" and followed a number of improvements related to footpaths and drainage.
"Motorists and cyclists turning right from the Newell Highway onto Baird Street will particularly benefit from the right-turn lane," he said.
"Work to install the new turning lane and traffic lights at this intersection will support up to 16 jobs and three contracting companies."
From February 10 work will be carried out from 7am to 6pm on weekdays, and 8am to 5pm on Saturdays, weather permitting.
Work on the right-turn lane is expected to start in March and be completed in late October, with the lights switched on soon after.
Changed traffic conditions include lane closures and reduced speed limits.
Transport for NSW advises "all efforts will be made to minimise noise" by turning off machinery and vehicles when not in use.