South of Timaru, the road again passes through gentle hill country, staying close to the coast but largely out of sight of it. The road veers inland briefly, bypassing Waimate as it reaches the plains around the mouth of the Waitaki River, which it crosses to enter Otago. It passes through Oamaru, from where it turns inland briefly, crossing undulating hill country before again reaching the coast at Moeraki. From here the road again hugs the coast along Katiki Beach, remaining closer to the ocean than at any point since Kaikōura. The highway turns inland at Shag Point, passing through Palmerston and Waikouaiti.