The Docwra Street and Midland Highway roundabout was initially funded as part of the $60 million Keeping Ballarat Moving initiative, promised at the last state election - the intention was to create a safer crossing for schoolchildren at Magpie Primary School, while also duplicating lanes on the entrance to the city.

However, given updated studies, Regional Roads Victoria has decided to install traffic lights instead, noting the 11,000 vehicles that use the current intersection are expected to continue growing.

RRV's western regional director Michael Bailey said the roundabout would have provided for 10 years worth of growth, while traffic lights would provide 40 years at the same cost.

"It takes us a long way into the future for a good investment at the same price," he said.

"It's still within the original project budget, the $60 million is across all intersections, we're working across all of them to manage the costs."

READ MORE: One of Ballarat's busiest intersections is about to slow for upgrade works

The new design keeps the new dual lanes with a centre median, as well as bike lanes between traffic and parking lanes.

Magpie Primary School principal Penelope Ellis said the school was also expanding, and the signalised crossing would make the area much safer for students and drivers.

"The crossing will keep the kids safe as they build their independence, especially when we have things like Walk To School Day," she said.

SEE EACH OF THE KEEPING BALLARAT MOVING UPGRADES HERE

"We have no buses to school, so all of them walk, ride their bikes, or are driven, and this is the main intersection.

"The amount of traffic at this intersection will continue to increase, so let's make it safer for everyone involved."

Buninyong MP Michaela Settle said the traffic lights will also encourage highway drivers to slow down as they entered the city - she added after looking at the traffic data, installing lights was a "no brainer".

"We've always known this intersection has been problematic," she said, noting it will also provide an opportunity for landscaping and beautification works.

Elsewhere in Ballarat, works are progressing on the Keeping Ballarat Moving intersections, with Gregory Street and Gillies Street intersection now just requiring resurfacing and linking to the train signals, and construction under way on Wiltshire Lane at Latrobe Street and the Glenelg Highway.

Investigation works have begun at Hertford Street in Sebastopol, while design work is continuing at the Dyson Drive and Carngham Road intersection.

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The City of Ballarat has been advocating for years for the duplication of Dyson Drive as part of the Ballarat Link Road project, which has not yet received funding.

"We work really closely with council, I speak to the CEO there at least weekly, we had a conversation last week specifically about Link Road," Mr Bailey said.

"One of the things we look at and evolve over time is those designs - this is a prime example where we thought initially roundabout but we're going with traffic lights (and) potentially it could be the same thing (on Dyson Drive).

"We'll work with council, there's a lot of development continuing in that Dyson Drive area so we have to look at the projections for that going forward, then we have to look at what happens with the Link Road, and the design of Link Road is not yet there, it's a concept design, and we talk really technical detail when we get to this stage."

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