The five-way roundabout will link Gilmore Street, South Road, Cahills Road, Woods Road and Old Wilby Road together, to improve traffic flow and pedestrian safety.
The $2 million upgrade has entered the half-way mark of construction.
Preliminary pavement layers were installed along with drainage systems.
Kerbs, lights and footpaths await construction as the project has entered another stage.
Moira Shire council administrator Graeme Emonson said the intersection required a roundabout, due to a history of motor incidents.
“The new roundabout is crucial to help safely manage increasing traffic flows while also improving access for pedestrians,” Dr Emonson said.
“This new roundabout is a key part of ensuring that council meets the growing needs of the community.”
Detours and traffic management are in place as the intersection remains closed.
The intersection was identified as the highest risk in Moira Shire by the Transport Accident Commission (TAC), with countless traffic accidents including a double fatality in July 2015 and several near misses in recent years.
As well as the five-way intersection, Woods Road will also be redeveloped with new curb and channel works to be constructed on the west side of the road, along with further pedestrian access, new paths, road width to include allowance for parking along Woods Road and an updated entry to the Yarrawonga Cemetery.
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