CONSTRUCTION began on the $17 million Kirkwood Rd extension at Tweed Heads South on Thursday.

A group gathered at the end of Sunshine Ave to turn the symbolic first sod and, when completed in 2013, traffic should be able to flow freely from and to the Pacific Hwy on the southern side of Terranora Creek.

All present knew it was a project 20 years in the making - including Tweed MP Geoff Provest.

"This is an important step forward," Mr Provest said.

"Tweed is one of the fastest growing regional areas and at times it moves too slowly for some residents.

"But this is only stage one, and provided we work together, we can get some positive outcomes."

Tweed Shire Council has invested $10 million in the project and will rely on $30 million in funding for subsequent stages from Mr Provest and the NSW Coalition Government.

Tweed Heads Residents and Ratepayers Association's Diane Gay said Mr Provest had indicated to her that now the dirt and bitumen had started to fly, so too would the money flow.

"(The) Kirkwood (Rd extension) will be great; it will take much of the traffic off Kennedy Dr.

"A lot of West Tweed residents will really benefit from this," she said.

Tweed Chamber of Commerce president Rory Curtis said his group's response was quite simple: "About bloody time."

"We're going to have a lot of traffic in Minjungbal Dr in coming years," Mr Curtis said.

"It's even better to see the contract awarded to a local company (SEE Civil)."

Mayor Barry Longland said the extension would be a "strategic link" in the Tweed Heads South road network.

"The design will also make it more convenient for motorists to access local businesses, reinforcing the area's status as the main commercial area in the Tweed," Cr Longland said.