Now the State Government has taken the first steps to easing the chronic traffic problems in the area, by allocating $100,000 towards planning for an upgrade.

A proposed bypass route - or F6 extension - between Yallah and Oak Flats has been pencilled into street directories for years, but has failed to attract funding.

The now complete Oak Flats to Dunmore upgrade, and soon to start Gerringong to Bomaderry upgrade were identified as priorities by the previous state government.

Kiama MP Gareth Ward said the $100,000 would be used "to examine long-term future options" for improvements to traffic flow in the Albion Park Rail area.

"The previously identified route is on the table, but so are other options that may be a possibility," Mr Ward said.

"This decision is very welcome news for the Albion Park Rail community and motorists.

"Anyone who drives through the area knows how much of a bottleneck it is ... I am very happy we have secured the money."

Barbara Johnston and Troy Fell have worked at what is now Wilson's Bike Hub at Albion Park Rail since the early 1980s, when the highway through The Rail was still single lane.

Ms Johnston said the road was "atrocious". It was not uncommon to see cars parked in front of the business have doors ripped off.

"We need a bypass," she said.

Mr Fell remembers his parents attending meetings 20 years ago, where authorities said the bypass would be ready in 20 years time.

"Nothing has changed since ... it is bumper to bumper" he said.

Mr Fell thought some businesses could be impacted but felt most would survive and access points could be vital for the future prosperity of the area.

Anne Wheeler at Highway BBQ Chicken said a bypass could hurt her business, but the existing road was a scene of "heaps of accidents".

"The traffic is just too heavy," she said. "I think there are enough residents in the area, along with a growing industrial area near the airport, to keep businesses alive."

Although most businesses in the area spoken to by the Mercury favoured a bypass, there were some concerns about possible impact.

One suggestion to ease the traffic burden involved the roundabout at the Illawarra Hwy intersection. A new connection between the Illawarra Hwy and the freeway, via on and off ramps at Yallah, might go some way to solving the problem.

Shellharbour City Mayor Kellie Marsh said a new road through Albion Park Rail was a priority for the council. "This is a win on a few counts," Cr Marsh said.

"It is imperative for the airport and emergency services that we have good traffic flow in the area."