Bethell Construction started building work on a new bus station in Radcliffe.
The Dale Street site was previously a car park and has now been cleared.
Bury Council and Transport for Greater Manchester (TfGM) have worked together to plan the project.
Plans include installing stepped seating areas, a stairs/ramp access and upgrading the surrounding environment as well as the public realm.
Purpose built shelters and a CCTV network plans are also to be developed.
Mike Owen, Interim Chief Executive of Bury Council, said: "This is the second phase of development proposals to regenerate Radcliffe town centre, following the £1 million refurbishment of the Market Hall.
"This will be followed by a third phase which will be a retail-led scheme, anchored by a supermarket, which we hope to start work on early in 2016."
The development is joint funded by TfGM and the council, with work expected to be completed in late 2015.
(LM/CD)
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