Road works in South Lismore.

Drivers can expect traffic delays in South Lismore due to the construction of a new roundabout.

Proposed roundabout at the intersection of Casino and Union streets, South Lismore.

LISMORE Council is set to begin construction of the new roundabout at the intersection of Casino and Union streets in South Lismore.

The work is funded by the federal government's Black Spot programs that is designed to cater for projected population growth and increased traffic conditions.

Council's Civic Services Manager Darren Patch said he is aware of the concerns expressed by business owners regarding the new intersection, however says the development is essential for the intersection to ensure it will cope with future traffic demands.

"We know people in South Lismore have had a very rough time lately with the flood and we will do everything possible to minimise impacts and sure people can still park and shop wile work takes place,” Mr Patch said.

"We have been able to complete several roundabouts in the last six months thanks to the federal government's Black Spots program. it's helping to slowly improve traffic flow right across the city without costing ratepayers a cent. It's a win-win for everyone.”

Temporary parking will be established during construction at the disused railway land opposite the shops in Union street, to compensate for the loss of street parking for customers.

The project is expected to be completed by mid July this year.