As part of the Rotorua lakefront redevelopment, Memorial Drive will be permanently closed to through-traffic from September 28.
Campbell Infrastructure will then begin work to transform Memorial Drive into a car park and plaza, rather than a thoroughfare.
Rotorua Lakes Council's general manager of operations Jocelyn Mikaere explains the new design as a place for people to gather, play, exercise and relax.
"A key part of this was reconnecting the land and the water, as well as creating spaces for recreation that are uninterrupted by roads and vehicles."
The existing road along the lake edge will be removed to prioritise pedestrian and cycle movement and allowing Memorial Drive to become a car park and plaza.