Residents and Mount Alexander Shire Council alike are calling for the reduction of the speed limit through Sutton Grange.
A petition to the council from 128 residents in May requested the speed limit be reduced on the Bendigo-Sutton Grange Road between Grays Lane and the Faraday-Sutton Grange Road.
A report to councillors at this month's ordinary meeting said council officers supported the view that lowering the speed limit from 100 km/h to 80 km/h through the area would improve safety without significantly affecting traffic flow or motorists' journey times.
They are now preparing a submission to Regional Roads Victoria, with the proposed section for the reduction starting in the area of Ontario Lodge Lane, to just past the Faraday-Sutton Grange Road intersection.
Sutton Grange and Myrtle Creek Fire Brigade captain Noel Davis said he supported lowering the limit through the township area.
"From a safety point of view, it's probably essential," he said.
Mr Davis said the Faraday-Sutton Grange Road crossroad was a dangerous intersection and it was lucky no serious crashes had occurred there.
A nearby intersection on a bend was also hazardous, he said.
The report to council noted the most recent traffic count found heavy vehicles comprised 16 per cent of vehicles in the area, and traffic was expected to increase with growth in the eastern parts of Bendigo.
It said the council could advocate for a reduction in speed along the section put forward by the petitioners, but as this area extended beyond the Sutton Grange township limits, Regional Roads Victoria was unlikely to back such a proposal.
The City of Greater Bendigo and Victoria Police formally supported the proposed speed limit reduction, the report said.
A letter from one of the concerned residents, written in May, noted that the population of Sutton Grange had also increased significantly in the past 16 years.
The council will also soon open tenders for improvement works at the intersection of the Bendigo-Sutton Grange and Faraday-Sutton Grange roads.
The $1 million project will include the installation of centre islands, improving visibility, and strengthening the road foundation and surface.