A system and method for automatic setting of a variable speed limits permits changing road conditions provides for variable speed limits at respective portions of a road based on weather conditions reported by sensor. A plurality of variable speed limit indicators are arranged at predetermined intervals along a road. Sensing report local road conditions regarding humidity, precipitation, temperature, fog, ice, snow, hail, sleet, wind, etc. A regulating unit correlates the sensed weather conditions with a predetermined speed limit for each given condition at each respective portion of the road. A matrix of a database may contain historical accident information regarding the specific location or zone of any accidents, time of day, date, temperature, precipitation, estimated speed and severity of injuries for each accident. The historical data can be correlated with the sensing of weather conditions to adjust the speed limit to a somewhat lower than otherwise value based on the historical data of a respective location. Thus, roads having previously known dangerous portions will have slower speed limits in the rain or snow than other portions reporting the same conditions. Portions of the road can be identified as a bridge, which tends to freeze before the rest of the road, and the variable speed limit reduced to reflect the additional potential hazard.