Work to upgrade Wallaga Lake Road has been suspended following the discovery of an Aboriginal midden.
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Bega Valley Shire Council said the discovery had occurred during excavation works for a stormwater drain.
Council's director of assets and operations, Ian Macfarlane said all works were suspended upon discovery of the midden, just north of the Lake View Drive intersection, and the site has been fenced off and secured.
"The next step is for an Aboriginal Heritage Impact Permit (AHIP) process to be undertaken and that has now commenced," Mr Macfarlane said.
"The significance of the site will be determined by an Aboriginal Cultural Heritage Assessment which must be performed as part of that permit process.
"We have been informed the AHIP process may take between six to nine months to complete and includes consultation with the Local Aboriginal Land Council."
Council said the road was open in both directions and signage placed around the site.
Works were to include stabilising and re-surfacing the road and installing kerb, gutter and drainage between Lake View Drive, Wallaga Lake and Fairhaven Point Way.
The project was funded by the Transport for NSW Regional Emergency Road Repair Fund.