The speed limit will be reduced from 100km/h to just 80km/h for a 1.6 kilometre stretch of Spring Drive, Corowa.
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Transport for NSW Director South West Lindsay Tanner said the new speed limit takes effect from September 7.
It follows a review of the road's crash history, traffic volume, road intersections and property access points.
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"The review recommended lowering the 100 km/h speed limit to 80 km/h on the length of Spring Drive from 115 metres west of Adams Street to 75 metres west of Croppers Road - a distance of about 1.6 kilometres," he said.
"This new speed limit will improve safety for all road users and reduce the likelihood of crashes, while adding minimal times to journeys."
Signs will be in place to advise motorists of the changed traffic conditions. Road users are asked to keep an eye out for the changes and follow the directions of signs.