A tunnel will be built under Blackheath, under plans announced by the state government.
Either a long tunnel, starting at Evans Lookout Road, or a shorter one starting at Sutton Park, are the only two options the state government will consider.
The NSW regional transport and roads minister, Paul Toole, made the announcement at the site where both tunnels will emerge, just past the heavy vehicle weigh station in Blackheath.
Mr Toole said the western options - a flyover over Centennial Glen and a widened road along Station Street - had been removed from consideration.
Those two options had created enormous uncertainty for residents, many of whom faced compulsory resumptions of their homes, and the news came as a welcome relief to those who had campaigned heavily to get them off the table.
Juliet Bourke, from the Save Centennial Glen group said: "Community activism works.
"I think we presented a unified front, we were articulate, pragmatirc."
She said the process of having a Blackheath co-design committee working on the options with Transport for NSW provided "a good opportunity to have our voice heard in an effective way. The community spoke and the government listened."
Sally Hollis, from Save Station Street, said the outcome was "amazing". She thanked the hundreds of people who supported both her group and the Centennial Glen group.
