The part of the road at Carrolls Cross has been the location of a number of serious accidents in recent years.
A rural traffic calming scheme is to be constructed at a collision blackspot on the main Waterford to Cork Road.
People living near Carrolls Cross have been calling for the layout of the road to be changed for years.
Traffic volumes on the N25 are also expected to continue to increase.
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The local authority plan to construct traffic islands and public lighting at the site.
The long term plan is to eventually build a dual carriageway between Waterford and Cork.
Senior Engineer with Waterford Council Gabriel Hynes says they hope the work can start early next year.
