GULF SHORES, Ala. — A new east-side road connection that Gulf Shores drivers have been waiting on is nearing the finish line. The city’s Waterway East extension is now physically connected to the Alabama Beaches Parkway, and the full stretch is expected to open by the end of the year once work wraps up on two connecting streets.
The project is funded by a RESTORE grant that covers all construction costs, meaning the new roadway is being built without local tax dollars paying for construction.
Where the project stands
The Waterway East extension has been built in phases:
- Phase 1 (complete): Extended the roadway from East 2nd Street to the edge of the Alabama Department of Transportation’s right-of-way for the new State Route 161 road and bridge.
- Phase 2 (complete): Connected Waterway East to the southbound Alabama Beaches Parkway (SR-161), north of the new bridge.
With both phases finished, the connection between Waterway East and SR-161 is complete. However, the roadway will not officially open to traffic until work is finished on two related projects: East 29th Avenue and Commerce Street.
What still needs to happen
The city has laid out the remaining steps before the full stretch opens:
- East 29th Avenue: Crews are expected to complete planned intersection upgrades on East 29th Avenue within the next week or two.
- Commerce Street: Once the East 29th Avenue work is done, crews will begin work on the Commerce Street connection.
- Resurfacing and striping: After Commerce Street is complete, crews will resurface all three roads and finish striping.
- Opening: The entire stretch will then open to traffic. The full opening is anticipated by the end of the year.
East 29th Avenue work nearing an end
Drivers who use the east side of Gulf Shores are already familiar with the East 29th Avenue project. The city fully closed East 29th Avenue from its intersection with Highway 59 to the entrance of The Track beginning Aug. 31 for planned intersection upgrades, with work originally expected to continue through Sept. 30. During the closure, the city recommended East 2nd Street and Waterway East Boulevard as detours for travelers heading to Gulf Shores International Airport.
The latest update indicates that the East 29th Avenue work should be finished within the next week or two, clearing the way for the next step on Commerce Street.
Why the connection matters
City officials say the extension will improve traffic flow and strengthen connectivity for both residents and visitors.
Gulf Shores’ road network carries a heavy load, particularly during the busy tourist season, when visitors crowd Highway 59 on their way to and from the beach. Additional connections give drivers more ways to move around the city, which can relieve pressure on the main corridors and shorten trips for residents running daily errands.
The east side of Gulf Shores is home to Gulf Shores International Airport, entertainment attractions along the Highway 59 corridor and growing residential and commercial areas. A direct link between Waterway East and the Alabama Beaches Parkway gives drivers another route connecting those areas to the state highway network and the new SR-161 bridge.
What is a RESTORE grant?
The RESTORE Act was passed by Congress after the 2010 Deepwater Horizon oil spill. It directs a large share of the civil penalties paid under the federal Clean Water Act by the parties responsible for the spill to the five Gulf Coast states for environmental and economic restoration.
Alabama communities have used RESTORE funding for a wide range of projects, including infrastructure, environmental restoration, tourism and economic development. In the case of Waterway East, the RESTORE grant covers all of the construction costs for the extension, making it a significant example of spill-related funds being invested in long-term improvements for a coastal community.
What drivers should expect
Until the full stretch opens, drivers should continue to watch for construction activity, lane shifts and equipment on East 29th Avenue, Commerce Street and the surrounding area. Once Commerce Street work begins, there may be additional traffic changes in that area.
Residents with questions about the project can contact the Gulf Shores City Engineering Office at 251-968-5059. Updates on city road projects are posted on the City of Gulf Shores website and the city’s Facebook page.
If the remaining work stays on schedule, Gulf Shores drivers should be able to use the full Waterway East connection by the end of 2026.
Update: A faster route to Gulf Shores International Airport
Updated Sept. 28, 2026
City officials have shared more detail on what the finished Waterway East Boulevard extension will mean for travelers, and the answer centers on Gulf Shores International Airport.
The direct connection between Waterway East Boulevard and the Alabama Beaches Parkway (SR-161, also known as the Beach Express) is finished, and crews are wrapping up the intersection upgrades on East 29th Avenue, which are expected to be complete within about two weeks. Work will then shift to the Commerce Street connection. Once that is done, crews will resurface all three roadways, apply final lane striping and open the entire stretch to traffic before the end of the year. The project continues to be funded entirely by a RESTORE grant.
When it opens, the extension and its link to the Beach Express will create a direct route to the airport. Using Commerce Street, drivers will be able to reach the airport’s expanding terminal and aviation park while bypassing heavily congested stretches of Highway 59, which is especially valuable during peak tourist seasons. The city says the new secondary entrance will distribute traffic more evenly across the road network and allow residents to reach the airport quickly without navigating local bottlenecks.
Airport growth driving demand
The timing matters because of how quickly air traffic has grown at the airport. Commercial service with Allegiant Air has exceeded initial passenger projections, and route offerings have expanded to 13 nonstop destinations. According to the city, the low-cost carrier has drawn tens of thousands of fliers, and nearly half of them, 43 percent, had never visited Alabama’s beaches before commercial service began. That visitor spending is flowing into Baldwin County’s local businesses, restaurants and public services.
For local residents, the service offers affordable direct flights to major cities, replacing long road trips to larger airports. The airport has also recently secured $2.5 million for terminal expansion, part of a broader push to keep up with demand, and better road access is a natural companion to that growth.