There is also a need to upgrade the existing lower block carriageway due to a deteriorating surface which needs maintenance.
Preparation began on April 28 and from May 5 to June 19 Taupō Quay construction was carried out.
On June 15 construction began on Wilson St between Taupō Quay and Ridgway St and is due for completion by August 14.
The council said, while work was under way up Wilson St, the street would be closed to all through traffic until the contractor is clear of the intersection.
While this work is being done access to the lower section of Wilson St will be from Ridgway St only.
Construction also began at the Ridgway-Wilson Sts intersection on July 13 and is also due for completion by August 14.
From July 27 construction will begin in Wilson St between Ridgway St and Maria Place and is due for completion by September 7.
Once work is clear of the Taupō Quay intersection, Wilson St will be open only to traffic travelling down to Taupō Quay from Ridgway St.
From here traffic management will be in place until the project is complete.