Horsham Rural City Council will start works on Monday to upgrade the roundabout at the intersection of Firebrace and Hamilton Streets.
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Partial closures of the roundabout will limit movement in some directions for Hamilton Street traffic at various stages throughout the next four weeks.
Vehicles are encouraged to use Wilson Street during the works.
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"This project involves the construction of green bicycle lanes that improve safety in what is a busy area used by many riders. Changes to the roundabout's central island and kerb design are also part of the works," Council chief executive officer Sunil Bhalla said.
"The contractors undertaking this project will work with affected businesses to provide access to and from properties in the area at all times, with some changed traffic flow to enable this.
"HRCC is committed to ensuring our local community has the infrastructure needed to meet future demands."
The project is being jointly funded by HRCC and the Transport Accident Commission.
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