Works begin on $175m Watson St Interchange & Northern Hwy Intersection upgrades

Monica Gameng   |   June 10, 2026
Northern Highway Intersection Upgrade (cr: Victoria's Big Build)

Works have kickstarted on the $175 million Watson Street Interchange and Northern Highway Intersection upgrades in Wallan, Victoria.

The two projects, once completed, will provide communities in Melbourne’s outer north with safer and more reliable journeys on these sections of the road.

The upgrades are jointly funded by the Australian and Victorian Governments, each contributing $90 million and $85 million respectively.

The Watson Street Interchange Upgrade will deliver the missing link to the diamond interchange at Watson Street and the Hume Freeway. This project includes adding new freeway ramps to give drivers direct access to Wallan northbound and the freeway southbound, easing congestion and improving traffic flow.

This upgrade will also install new traffic lights on both sides of Watson Street bridge as well as deliver improved walking and cycling paths.

On the other hand, the Northern Highway Intersection Upgrade will improve safety and increase capacity at a key Wallan intersection. The first stage of works will include delivering new lanes and a second right-turn lane from Watson Street heading north to improve traffic flow.

Walking and cycling connections will also be upgraded for safer local travel.

Together, the two upgrades are expected to create more than 1,100 jobs during construction.

“These upgrades will help keep people moving safely in our communities and reduce congestion on busy local roads.

“After a decade of neglect under Liberal governments, these investments show how only Labor has the will to deliver the long-awaited infrastructure needed for the outer north,” Federal Member for McEwan Rob Mitchell said.

“These investments will support safer travel and stronger local connections while improving traffic flow for local communities,” State Member for Kalkallo Ros Spence said.

“These upgrades will improve safety and ease congestion for local families,” State Member for Yan Yean Lauren Kathage said.

Site investigations are almost complete for the Camerons Lane Interchange on the Hume Freeway, which is the next major project in the pipeline. This new interchange will improve access for growing residential areas while easing pressure on the wider network.

The Albanese and Allan Labor Governments are also investing in Stage 2 of the Donnybrook Road upgrades, which will include building a second bridge over the Hume Freeway and road duplication works to improve traffic flow and safety for growing communities.

The Donnybrook Road upgrades, Watson Street Interchange upgrade, and the Northern Highway Intersection upgrades all build on a pipeline of $1.1 billion in joint transport investments already underway across Melbourne’s outer north.

“From Watson Street and the Northern Highway to Donnybrook Road, our significant investments in Melbourne’s outer north will make it safer and easier for people to get around.

“We are also nearing completion of planning for Camerons Lane, which will support future growth,” Federal Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King said.

“These projects will deliver safer and more reliable roads for growing communities, helping people spend less time in traffic and more time getting where they need to go.

“We’re proud to have a partner in Canberra working with us to deliver better roads and smoother journeys for communities across Melbourne’s outer north,” VIC Minister for Transport Infrastructure and Minister for Public and Active Transport Gabrielle Williams said.

Source: Minister for Infrastructure, Transport, Regional Development and Local Government; Victoria’s Big Build – Big Build Roads (1, 2); Mitchell Shire Council

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Monica Gameng
As Felix's Marketing Assistant since 2015, Monica is responsible for researching and sharing new and progressing projects within the construction and mining sectors in Australia. It's no surprise that Monica has her finger on the pulse of Australian major projects given she has produced more than 3,000 posts to date. She truly is an industry expert!
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