A new red light and speed camera will be installed at the intersection of Borella Road and Young Street to target Albury drivers 24 hours per day, including when the speed limit is lowered in the school zone.
Transport for NSW has announced the camera will begin working from next week.
If a vehicle is detected both speeding and running a red light, two penalty notices will be issued and demerit points recorded for both offences.
Transport for NSW south-west director Lindsay Tanner said the 24 hours per day camera will be located within a school zone and will be programmed to detect vehicles exceeding the speed limit, including exceeding 40 km/h during sign-posted school zone times.
"Around 60 per cent of red light speed camera offences are from people running red lights so these cameras will target this behaviour and, in turn, make the area safer for the community," he said.
"With a school nearby, this camera will help protect school students walking to and from school. Children are some of our most vulnerable road users and must be protected."
Albury councillor Henk van de Ven, who operates a business 150 metres from the intersection, said it was an "idiotic location" for a camera, with heavy traffic from schools in the area.
"I really want to see that data that they've used to come up with this location for a red light camera," he said.
"I can't remember the last time there was a serious injury at that intersection.
"I just think this is a money grab - even through the money is going to a community road safety fund."
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Traffic NSW notified Albury Council last week about installing the camera.
"There hasn't been any community consultation about this whatsoever. I'm suggesting most people would say this is an unfair red light camera," Cr van de Ven said.
"Why spend your money on this sort of stuff when you should be spending your money on increasing the traffic flow through that bridge ... the bridge is totally inadequate for our future traffic growth."
Cr Alice Glachan said the camera was not on the agenda of last week's council traffic committee meeting, but could have been previously.
"I'm not a traffic expert, but I can only believe that appropriate studies will have been made, information collated and this is clearly what they believe is an appropriate response for that," she said.
"Anything that makes our community a safer place, on or off the road, is very important to us as a council."