Road works on the Western Highway will be delayed after workers found breaks in the old water main at the Heath Street intersection.
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Ararat Rural City Council chief executive Dr Tim Harrison said a quick resolution to the issue seemed likely.
"The good news is GWMWater crew will install new pipes for the water main this week," he said.
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"We really appreciate their speedy support in getting things back on track.
"The benefit of addressing the existing soft soil is that we're actually restoring the foundation to a better and more stable condition than it was before the crews arrived."
Te Heath Street is being widened to enable the intersection to include a slip lane and improve motorists' visibility and train drivers.
The planned Greenhill Lake Development will also likely mean Heath Street begins to be used more frequently.
Dr Harrison said the works were progressing well.
"Despite the setback caused by the water main and soft soil, it's encouraging to see the progress our team along with Millers Civil Contractors have made with over half of the reconstruction works already carried out," he said.
"This includes sub-surface drainage and construction of the new road pavement along the Ararat bound lane of the Western Highway and on Heath Street.
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"The final stage includes completing the pavement work this month, followed by surfacing the road with bitumen, installing traffic signs and lane markings.
"Once complete, motorists will have a much safer access from the highway to the Ararat East Development Area."
The project is due for completion by the end of May.
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