Acting Department of Transport director (Loddon Mallee) Barry Green said he was aware of the proposal.
"We will work with the City of Greater Bendigo to address any concerns raised by the community on implications this development may have for the road junction."
BENDIGO'S council says it will refer concerns about traffic conditions to the Department of Transport after nearly 200 people spoke out about a KFC build on a busy Epsom intersection.
The City of Greater Bendigo did not directly answer the petitioners' question asking whether the council should have added extra traffic conditions when it approved the development.
The council approved a KFC on the busy corner of Midland Highway and Howard Street last December despite a number of councillors' concerns about increasingly heavy traffic loads.
Several councillors said upgrades were needed. Several of them described the intersection as "pretty much a Bendigo bottle-neck" or "potentially dangerous".
Those views were shared by 200 people who petitioned the council to directly ask whether it thinks conditions should be imposed.
The council must reply at a public meeting, which will likely guarantee a discussion on the public record next Monday.
Council officers have drafted a response for councillors' consideration at next week's general meeting.
"The application was referred to the Department of Transport (DoT) as part of the planning process and DoT supported the proposal subject to conditions," it said in a draft response put forward for councillors to consider at next week's general council meeting.
"At no point did DoT indicate that delaying the proposal until upgrades to the intersection were completed would be necessary."