The new 400-space lot, owned by UNC and under lease to Chapel Hill Transit, will be located near University Lake and will have bus service to and from Chapel Hill.
Carrboro Town Manager Robert Morgan said the planned park-and-ride lot is another step in a long line of improvements to existing parking and driving conditions in the Chapel Hill-Carrboro area.
Morgan also said he hopes the lot will ease the commute that residents face every day.
"The aim of this lot is to provide a viable way for people working in Chapel Hill and at the University, but living in Carrboro, to use public transportation," Morgan said.
"We are trying to relieve the congestion felt in the main corridors of the area."
But Morgan cautioned that the work is far from finished.
"The next step is to go out and begin the bidding process. The vote (Tuesday) night just gave us the authorization to proceed."
Morgan added that while Carrboro and Chapel Hill are helping with the new lot, the main responsibility of designing, constructing and operating the lot will rest with Chapel Hill Transit.
Transportation Director Mary Lou Kuschatka said the money for the construction of the new lot will be coming from multiple sources.