Central Highlands Water (CHW), which is building the project, said in a statement sewer installation has been finished along the west side of the Yarrowee River and crossed at Hill Street.

"The next phase of stage two will continue along Humffray Street South, to Prest Street in Ballarat South."

The Courier noticed sections of the intersection of Elsworth Street West and Ingle Street to Humffray Street are currently blocked for installation work on Wednesday.

There are about eight businesses near the current construction area, including gyms, a car dealership and several manufacturers.

"They did a great job," Chris Polkinghorne from Conrod Corner Used Cars said. The company is now the closest to the sewer build team. He said the business hasn't been affected at all.

Maddy Scholten from BCM Homes said the crew stayed in front of the store for about a week, but cars could still pass through, with brief delays sometimes.

"We'll be working closely with business owners and residents throughout the project to keep them informed of timelines," CHW said.

CHW said the current stage is "made up of two kilometres of new sewer pipeline, built primarily underground and will eventually meet an overhead section towards the southern end of the route".

Ballarat Sewer Build is one critical infrastructure project with three stages, aimed at providing another 100-year service for the community, according to CHW. Stage one, traversing through central Ballarat, was completed in early 2022.

"Planning for Stage three of the project is also underway with the pipe alignment presently being finalised," CHW said. " Throughout April geotechnical studies are being completed from Peel Street through to Brown Hill Reserve in preparation for the third and final stage."

"Works are anticipated to commence in the Ballarat East area in 2025."