Tauranga City Council has given the green light to start construction on the $1.6m first stage of work on 15th Ave as soon as possible.
The council paused the project last month but voted unanimously last night to unpause it after hearing assurances from transport modelling experts it would not make congestion worse.
Elected members heard there might be a modest time saving on average for evening commuters - less than a minute - but that the project would mainly make journey times less variable.
Principal transport planner Bruce Robinson said there would be little impact on journey times without releasing the Hairini Bridge bottleneck.
The stage will include adding traffic lights at the 15th Ave intersection with Burrows St, a new bus and T3 lane between Mayfair and Scantlebury streets and an exit from Grace Rd on to 15th Ave.