Work has started on building a Ballarat Link Road bridge to connect the western employment zone to Remembrance Drive.
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The planned road will eventually extend to the Glenelg Highway.
Stage 1B from Liberator Drive to Remembrance Drive includes a bridge across the Ballarat train line.
There will be enough space left to allow six rail lines underneath to account for future growth.
It will also leave the Skipton Rail Trail intact for cyclists and runners.
Ballarat City mayor Samantha McIntosh said it was a win for business and residents.
“It opens up access to the Ballarat West Employment Zone,” she said.
“It also passes over the Skipton Rail Trail and protects the chance for people to get on their bike.
“This is not just about business development, it is about protecting the space for people as well.”
The new road is planned to take traffic off Sturt Street in Ballarat.
Work is expected to be finished in March next year depending on the weather.