A $7.4 million bridge and extension to Cruse Street is one of the keys to a plan from mayor Dean Rees to increase Wangaratta's population by 10,000 people.
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The new connection between Sisley Avenue and Reith Road, the biggest road project in Wangaratta's history, was officially opened on Thursday.
It will provide a link to the north west part of the city, which will be home to 1700 new subdivided blocks after the rezoning of land was approved by the Victorian government this week.
"It links our areas beautifully," Cr Rees said.
"So much is happening in the north west growth areas."
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He said the Cruse Street extension will save two minutes per trip, which adds up to 24 hours per year.
The project including a bridge over Three Mile Creek, almost two kilometres of storm drains and 1.5 kilometres of footpaths was originally estimated to take 12 months, but has been completed in eight months.
Residents, councillors and staff celebrated the opening on Thursday by crossing on foot, bicycles and in cars.