Shoalhaven City Council says the new $380,000 roundabout being constructed at the corner of Illaroo Road and Page Avenue is in response to three crashes in the area.
Council started construction of the roundabout on May 15, with the completion expected ahead of schedule proposed, by the end of June, 2019.
"This project is being funded by both council and through the NSW Safer Local Government Roads Program (also known as the Safer Roads program)," a council spokesperson said.
"The total project cost is $380,000.
"The Illaroo Road-Page Avenue, North Nowra roundabout project was nominated to address the reported crash history at the intersection.
"In the five year period between July 1, 2010 and June 30, 2015 [the period required to be assessed when the July 2016 submission was made] there were three intersection related crashes that resulted in injuries at the location."
The spokesperson said the single lane mountable roundabout had been approved for the location.
North Nowra resident Ben Smith is one of a number of residents in the area who have questioned the roundabout's installation.
"What's it going to do?" he said.
"I tried for days to contact council and no one could tell me why it was being constructed.
"It's a waste of time and taxpayers' money."
He said the roundabout seems "way to close" to the Page Avenue intersection "making for a very tight turn" to continue north along Illaroo Road.
"I live north of the intersection and they had the road shut down the other night and everyone had to backtrack all up through the back of North Nowra to get around," he said.
"I had my father in hospital and it was a pain."