Temporary traffic lights have been installed at the junction of Newcastle Street and Watson Road causing traffic to build up during peak times.
Notts county councillors voted unanimously to grant planning permission for the new £3.2m interchange in February.
It will take up part of Queen Street car park and replace the existing bus stops on Hardy Street and Ryton Street.
Work is scheduled to start on the building of the bus station this summer with its opening planned for spring 2015.