RIP down the traffic signs, throw them out and erase the road markings - it doesn't seem the logical way to improve road safety.

But Bendigo City Council, in Victoria, has decided to do just that, and follow a revolutionary overseas trend in urban design that planners say saves lives, improves health and creates better communities.

The council will today unveil a $16 million makeover of its city centre, coined "naked streets" by commentators. It will radically alter the city centre by narrowing spaces for cars and returning the town's wide streets to walkers and cyclists.