One of the main routes into Bridlington is being hit problems just months after a £460,000 improvement project.
Workmen spent 11 weeks upgrading Bempton Lane before Christmas but holes have appeared in the road in the past fortnight and temporary traffic lights have had to be installed near to the junction with Darwin Road.
Last week, teams from Yorkshire Water checked the sewers, using cameras to check for damage.
A spokesman for East Riding of Yorkshire Council said: "Following our resurfacing of Bempton Lane last year, the road has experienced some unexpected settlement issues at this one location.
"We have investigated the issue and our highway maintenance team will be carrying out repairs at the site this week to rectify the problem.
"All being well, we aim to have those repairs completed by Friday."