Orange City Council Communications Officer, Allan Reeder, said work was well underway on the two-kilometre long third stage of the SFR works.

"Due to dry weather in recent months, council's contractor Hamcon, is making steady progress on Stage 3 of the Southern Feeder Road project which began in November," he said.

"It's expected that the western section of new road between Elsham Avenue and Lone Pine Avenue will be sealed in the coming weeks and be opened to traffic by the end of March.

"Kerb and gutters have been completed and street lighting will be installed progressively."

Mr Reeder said work had also begun on the eastern section of the project between Lone Pine Ave and the Mitchell Highway.

It includes a new entry to the SFR from the Mitchell Highway near Dairy Creek Road.

"As well as upgrading the existing Dairy Creek Road, this stage of the project also involves building a new road across a greenfield paddock and creating a new intersection with the highway," he said.

"The eastern end of the project is expected to be completed early in the second half of the year."

The new highway intersection will be where a billboard is currently located. He said that would be dismantled and re-built elsewhere.

Funding for the project has been provided by three tiers of government.

Mr Reeder said $3 million had been provided under the federal government's Heavy Vehicle Safety and Productivity Program.

A further $3 million has been provided under the state government's Infrastructure NSW Program (Regional Growth) while Orange City Council had paid $1.5 million.

The next stage of the SFR will extend west from Forest Road to near Towac Park.

Mr Reeder said final designs were still being developed for Stage 4 prior to the project going out for tender.

This 2.6 kilometre section gained environmental planning approval last year. The route will intersect Anson Street, Rifle Range Road, Cecil Avenue and Shiralee Road.

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