A driver assistance system for a vehicle includes a camera and a control. The camera is disposed at the vehicle and views forward of the vehicle and is operable to capture image data. The control includes an image processor operable to process image data captured by the camera. The control, responsive at least in part to image data processing by the image processor, is operable to determine when the equipped vehicle is at least one of (i) approaching a construction zone, (ii) entering a construction zone and (iii) driving along a construction zone. The image data processing by the image processor may include at least one of (a) traffic sign recognition, (b) character recognition, (c) object detection, (d) object recognition, (e) spectral discrimination, (f) spatial recognition and (g) lane marker detection.