It acts to remove through traffic, particularly heavy vehicles, from the town centre.

In August 2013, Lend Lease Engineering (formerly Abigroup) was awarded the contract to construct the bypass, including a new 280-metre (920 ft) bridge spanning the Bunyip River drains.

Construction finished in May 2015, six months ahead of schedule, for a cost of $66 million.

[4] The next stage is the eventual duplication of the bypass, its linking to the South Gippsland Highway, and then the conversion of the road to Pakenham; more planning is required before any further progress is to be made.

Koo Wee Rup Bypass is entirely contained within the Shire of Cardinia local government area.