The 2000s saw two major developments relating to transport which affected Dundrum greatly. Firstly, a road bypass was built behind the west side of the village, taking most of the traffic away from the main street. Secondly, the old railway line has been converted to a tram line, running the new Luas tram system. Since the railway embankment was cleared away in the 1970s to make room for a major road junction at the north end of the village, the tramway designers now had the problem of getting the trams across a very wide crossing without any place for supporting pillars.
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