(1) A road authority may enter into an arrangement with another road authority to transfer a road management function of the road authority that would otherwise apply under section 36 or 37 with respect to a road to the other road authority.
(2) If a road authority has entered into an arrangement under this section in respect of a public road, the road authority must include the details of the arrangement in its register of public roads.
(3) While an arrangement is in force under this section, the road management functions of each road authority which is a party to the arrangement have effect subject to the arrangement.
Example
Specified road management functions in respect of a section of a road or a particular piece of infrastructure may be transferred by agreement from VicRoads to a municipal council or from a municipal council to VicRoads. If this occurs, the road authority to which the road management function is transferred becomes the road authority for the purposes of this Act according to the tenor of the arrangement.