Construction has started on a four-lane road in Warkworth, which is expected to relieve major congestion.
The $62 million project will link Matakana Road and State Highway 1 and also includes an off-road walking and cycling path.
The government says the Matakana Link Road project, north of Auckland, will create up to 120 jobs.
It will be delivered in two stages, with the first expected to be completed by the end of next year.
Auckland Mayor Phil Goff said the road would ensure Warkworth could cope with the 20,000 people expected to move to the area over the next 30 years.
Minister of Transport Phil Twyford said construction on the road would offer people real transport choices.
"This new road will help set up the area for growth and have a safe, separated cycling path built along it, reflecting our balanced transport policy," Twyford said.
"It's just the sort of project this government wants to see in New Zealand's post-Covid-19 economic recovery, bringing both immediate and long term benefits to the Warkworth community."