A motorway extending south from the Andersons Bay intersection was first proposed from the late 1950s, when Dunedin, like other major centres in New Zealand, was experiencing rapid vehicle growth and a decline in public transport usage.[1] A report from De Leuw Cather was commissioned by the Dunedin City Council in 1963, which recommended a number of changes primarily to Dunedin's arterial road system. A number of roads around the city were widened to four lanes, and the report recommended that investigation, design, and construction begin of the proposed southern motorway. During this time period the then Ministry of Works designated a substantial amount of land for future upgrade works along SH1, with a view that by the late 1990s much of it would be rebuilt as motorway, possibly along the lines of a US Interstate, with bypasses of all small towns, grade separation of all intersections, and no private property accesses.
Within the Dunedin area, Council planning maps from the 1960s and 1970s show a designation for a "Dunedin to Milton Motorway" which is part of these Ministry of Works designations.
This was the first section completed in 1972 and bypassed the suburb of Green Island.This section began at the southern end of Kaikorai Valley Road at Burnside, and travelled south for 2.5 kilometres, dividing Green Island from Abbotsford. It ended at the southern end of Green Island, and connected with the main south road through Fairfield. Construction of this section of motorway is considered by some people to have been a causal factor of the Abbotsford Landslide in 1979.
Around the same time, construction began on the section traversing Saddle Hill, from Mosgiel to Fairfield. Earthworks were undertaken to allow for the construction of a four-lane motorway with northbound and southbound slip lanes extending from a future interchange with SH87 at Mosgiel. At the time the road was constructed with two lanes and a northbound passing lane northward from the SH1/SH87 intersection