Construction crews started work on Kennedy Way and Quintana Road on Wednesday.
The work is planned for the hours of 7 a.m. to 7 p.m. Monday through Friday and is set to end on July 2.
Crews are relocating a water main through the intersection of the two roads.
Traffic will be detoured through Main Street and Morro Bay Boulevard.
All businesses are planning to remain open and will be accessible during the construction.