The Nevada Tahoe Conservation District is leading the work. Crews will rebuild the full half-mile stretch of Kahle Drive.
Agencies are asking residents and users of the area to be alert and prepare for temporary changes to access and conditions in work zones.
Plans include new sidewalks, crosswalks, and a bike lane. Utility lines will be placed underground. Landscaping will also be added.
According to the Tahoe Regional Planning Agency, the road is in poor condition and unsafe for pedestrians and cyclists. It also lacks storm-water infrastructure.
Construction should finish by October 2026.
The project is funded by many sources, from state and federal agencies to local groups.