WYNDHAM council will apply to VicRoads to have the speed limit reduced on Hogans Road in Hoppers Crossing.
Residents of Hogans Road have presented the council with a petition signed by 105 people raising concerns about safety and traffic flow.
Councillors agreed at their Monday meeting to ask VicRoads to lower the speed limit from 70km/h to 60.
A report to the council said VicRoads had indicated support for the new speed limit.
The petition follows an incident on Friday afternoon when a car crashed into a building on the corner of Mossfiel Drive.
The car ploughed into the side of a building, knocking a sizeable hole in the wall.
Police are investigating.
The accident was the second time in the past four months that a car has crashed into a building on Hogans Road. In March, a car crashed through the front window of a house after drifting across the road.