Kew Business group spokesperson Peter Newman says the Kew Industrial Project will bring positives to the business community.
The development is located on the western boundary of the North Coast Railway line, between Kew and Herons Creek.
The Development Application (DA) for the Kew Industrial project was approved by Port Macquarie-Hastings Council in 2008.
The developer has confirmed the project is going ahead and clearing of vegetation commenced on Monday, August 5.
Mr Newman said the Kew Main Street upgrade will help to accommodate an increase in traffic, as a result of the development.
The $1.6 million upgrade has been funded by the Federal Government and Port Macquarie-Hastings Council.
Mr Newman said the funding was provided with the Kew Industrial development in mind.
"The area has been zoned as a heavy industrial site for the last 40 years," he said.
In announcing the Kew Main Street upgrade funding, Federal Member for Lyne Dr David Gillespie said the project aims to provide improvements to beautification, parking and functionality.
"Port Macquarie-Hastings Urban Growth Management Plan identifies population growth in the Kew area will be strong, he said.
"Impacted by growing population areas to the west in Kendall and the Lorne Valley, and from additional land to the east zoned for residential purposes, only 800 metres from the main Kew town centre.
"Kew is the southern gateway to the Camden Haven and a gateway for many tourists travelling west to the picturesque hinterland of Comboyne and beyond."
Between mid-December 2017 and mid-March 2018, members of the Kew Business Community conducted a traffic data collection process.
Mr Newman compiled the traffic report and said the aim of the data collected was to determine how many vehicles were passing through the Kew Main Street intersection, during the hours of 5am and 6pm between Monday and Friday.
The report found an average of 641 vehicles pass through the intersection each hour and over two million each year.