The government has announced a $520 million upgrade for State Highway Two between Tauranga and Waihi.
It said $286 million will be spent on the Tauranga Northern Link - a new 6.8 kilometre highway, which will connect the Takitimu Drive Toll Road with Te Puna.
And $85 million will be spent on road safety improvements.
Transport Minister Simon Bridges said it was a significant investment for Tauranga and the wider Bay of Plenty area.
Mr Bridges said $150 million was earmarked for a possible future expansion of the Tauranga Northern Link.
