Newcastle City Council has begun work to improve Anderson Drive in Tarro.
The westbound lane has been damaged by a leaking water main, which will be replaced and moved to the other side of the road.
The upgrade means the road won't decay as quickly and will be smoother for drivers and cyclists.
A new footpath is also going in on the northern side of Anderson Drive, providing better access to Our Lady of Lourdes Primary School and Tarro Reserve.
A lane will stay open during the works but on-street parking will be affected.
The pipe should be finished early in the new year, then work on resurfacing will start.