Our Austin

Oak Hill Parkway Rebuilt With New Lanes and Paths

TxDOT opened the expanded U.S. 290 and SH 71 corridor, though construction impacts remain through 2026.

Updated on Sept. 26, 2026 in Home Renovation

Screen-print poster illustration of multi-level highway flyovers in a rolling, arid hill country landscape, rendered in a vintage graphic style.
The Texas Department of Transportation has opened the expanded Oak Hill Parkway, a $677 million project aimed at relieving congestion between Austin and the Hill Country. AI Illustration. Upload story photo >

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Commuters traveling between Austin and the Hill Country can now access the rebuilt Oak Hill Parkway. The TxDOT project aims to improve traffic flow by expanding the major intersection and adding new capacity to the gateway corridor.

Why it matters

The $677 million project is designed to reduce congestion at the Y-interchange, a critical bottleneck for residents living in suburbs west of the city. While the main lanes are now open, drivers should prepare for continued adjustments as work wraps up in the coming year.

The project cost $677 million and encompasses seven miles of widened roadway, now featuring three main lanes in each direction. Officials have also completed 14 miles of shared-use paths and 1.5 miles of sidewalks.

The players

TxDOT

The Texas Department of Transportation is the state agency responsible for the design and construction of the regional highway system.

Fluor

This engineering and construction firm served as part of the joint venture tasked with rebuilding the corridor.

Balfour Beatty

This infrastructure firm worked in a joint venture to perform the construction on the parkway.

The details

Constructed by a joint venture between Fluor and Balfour Beatty, the project replaces the aging Y-interchange with new flyovers between U.S. 290 and SH 71. The expansion also includes new frontage roads and U-turn capabilities meant to streamline local movement. Although the parkway is open, TxDOT noted that construction impacts and lane shifts will persist until the final completion date in 2026.

Timeline

  1. TxDOT broke ground on the project in July 2021.

  2. The parkway officially opened to drivers on September 26, 2026.

  3. Construction impacts and detours are expected to continue through 2026.

The Texas Context

This project represents a significant shift in highway-focused capacity for the region, following the pattern of long-term transit investments like the Project Connect plan. Like other major infrastructure efforts in the area, it prioritizes addressing congestion for those living in the rapidly growing suburbs west of Austin.

Drivers using the U.S. 290 and SH 71 interchange will benefit from the new main lanes and improved U-turns immediately. Commuters should remain alert for construction-related lane shifts and ongoing work zones that will persist on the route through 2026.

The takeaway

While the main lanes are now open, the construction footprint will remain active for the next several months. Residents should continue to plan for potential lane shifts and variable travel times through the end of 2026.

Further reading

For more on infrastructure developments affecting local commutes, visit the Home Renovation section.

Live Poll

Do you believe major highway expansion projects effectively improve traffic flow in your area?