Wollongong City Council and Roads and Maritime Services (RMS) will carry out reviews of on-street parking in Thirroul later this year.
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The reviews will begin after the opening of a new 150-space commuter car park in the suburb.
Transport Minister Andrew Constance officially started work on the project on Monday.
Mr Constance was hopeful the car park would go some way to alleviating the parking crush in Thirroul.
In the wake of the new rail timetable, more commuters have been driving to Thirroul and occupying untimed on-street parking for the entire day.
Businesses and residents have been complaining about the lack of parking ever since.
Wollongong City Council is responsible for the parking time limits in streets around Thirroul station, with the exception of Lawrence Hargrave Drive, of which RMS has oversight.
A spokeswoman said the council supported the creation of additional commuter parking spaces but was aware further work needed to be done to deal with the issue of parking at Thirroul.
The spokeswoman said the council would look to minimise any potential effects of the new car park, such as traffic congestion and pedestrian safety, particularly around Thirroul Public School.
"As part of this, council will review the use of on-street parking in Thirroul once the new 150-space car park has opened," the spokeswoman said.
"This review will look at parking patterns in Thirroul over a period of time, and monitor changes to drivers' parking habits, including the use of the new car park.
"Council will use this information to decide whether changes need to be made to on-street parking in the suburb."