VICROADS says its infrastructure won't be able to keep pace with the rapid growth of drivers in Bendigo.
"We can't just continue to build new roads," VicRoads regional director Mal Kersting said.
"It's not sustainable to keep adding, duplicating or widening roads."
Mr Kersting said the expected population growth in Bendigo meant the ease of driving around the city would be diminished in years to come. He said developments and subdivisions had created "huge demand" on key traffic routes to Maiden Gully, Huntly and Jackass Flat.
"We're continually looking at ways to optimise traffic flow. There are a lot of challenges and limitations."
He said dedicated bus lanes, as well as cycling and walking paths, would all form long-term solutions to traffic management.
"We can use transport capacity better. That's a long-term objective and something we're working with the community on."