"Spectators will have a unique viewing position on the route, there is another 120km of route which is free to spectators, including some great points through London and The Royal Parks.”
British Cycling welcomed the decision, saying it had resulted in a "much more satisfactory situation". President Brian Cookson said: "Following the test event, both myself and UCI President Pat McQuaid made our views about the unsatisfactory arrangements on Box Hill clear to Locog.
"Both before and since that time, there has been considerable input from the technical representatives of both bodies into the planning process, and I am pleased that this, together with the public and media pressure, has now resulted in a much more satisfactory situation for cycling fans than had originally been the case."
The Zig-Zag Road is widely regarded as the best place to watch because the cyclists will be passing by more slowly than elsewhere on the 250km route.
Last year world champion Mark Cavendish called for a petition to be launched over the plans to offer only a few thousand fans a chance to watch the action.
“You can’t get on the Mall, you can’t get on Box Hill, which are the two key areas of the race," he said. Everywhere else you will be able to watch it but the two key areas of the race I think it might be quite difficult to see.
“Maybe we can get some petition or something so that people can come and watch the road race.”
Work begins on Jan 30 and the Zig-Zag road will be closed for a week. Strips of land on both sides of the road will be trimmed and occasional "bridges" of overhanging trees will be left in place to allow woodland creatures to cross.
In March BT will lay a fibre optic cable at the top of Box Hill to improve communications during Games-time. This will also provide high-speed broadband capabilities to the area in the future. By April the National Trust will resurface the road.
The final capacity of the spectator areas will be confirmed when the work is completed and a health and safety report is carried out.
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