Port Macquarie-Hastings Council has allocated almost $1 million to upgrade a section of The Ruins Way between Major Innes Road and Sitella Street.
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The funding was announced as part of council's 2019/20 operational plan.
There is no time frame when the works are likely to start.
A council spokesperson says the works are anticipated to include a range of upgrades.
"The works between the two intersections are subject to change pending final design planning," the spokesperson said.
"The works could include, pavement widening and reconstruction, new kerb and guttering on the eastern side of the road, storm water drainage improvements, water main alignment, new lighting and new 1.2m wide footpath on the western side and 2.1m wide footpath on the eastern side of the road along with median refuges.
"Delivery is expected within the 2019-20 financial year.
"More information will be known once project planning and design work is progressed over the coming months."
The Ruins Way resident Candice Shelley has welcomed the news of the road upgrade.
She says the works will create a safer environment for children, in particular.
"I think this is fantastic news," she said.
I think this is fantastic news.
- Candice Shelley
"It will help reduce the speed (of cars) while the kerb and guttering and the new footpaths will be better for everyone.
"It will also certainly be safer for kids who walk to the local schools and to the playgrounds in the area."
The family has lived on the street for five years and have noticed a dramatic increase in traffic in that time.
When they first moved in, The Ruins Way only extended another 50 metres up the road before turning into a dirt track.
"Now cars go flying up and down (the street) and we have actually seen a few kids nearly get hit by cars too," she said.
"We have two schools in the area, a few playgrounds as well, so there are lots of kids who are walking around.
"I think it will make it safer all round," she said.
Deputy mayor Lisa Intemann says the works will no doubt be well-received by residents.
"As well as storm water drainage improvements, it will be terrific to have a footpath both sides and kerb and gutter next to the park, as well as lighting installed," the deputy mayor said.
"Many people have complained to me about how narrow the road is in parts, and the widening will be a significant improvement.
"There will be trees lost, but council will keep that loss to a minimum."
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