Moves to establish a bypass of Lilydale’s Main Street began in the 1950s when retailers wanted to protect their unusually tree-lined wide Main Street. However, increased development in the 1960s led to the Lillydale Shire Council to widen the street and build it on the three existing north-south levels we have today.

By the late 1970s the traders and businesses realised if Lilydale Main Street was to prosper a bypass was needed. Despite their best efforts every time agreement was reached with council and the state government, nothing happened.