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It is in Thupavamsa. I doubt if there's any online version of the translation.
The Pali version of Thupavams in the following link says, at the time the people were building the road, Sumedha was supposed to be flying in the sky. When he asked if he could also help, as people already knew that he had iddhi powers they gave him to construct a difficult part of the road.
Te puna divase asadisa mahādānaṃ sajjetvā dasabalassa āgamana maggaṃ sodhenti. Tasmiṃ kāle sumedhatāpaso attano assama padato uggantvā rammanagaravāsīnaṃ tesaṃ manussānaṃ uparibhāgena ākāsena gacchantā te haṭṭhapahaṭṭhe maggaṃ sodhente disvā kinnu kho kāraṇanti cintento sabbesaṃ passantānaṃyeva ākāsato oru ekamante ṭhatthāyaha te manusse pucchi.’Hambho kassa pana imaṃ maggaṃ sodhethā’ti te āhaṃsu bhante sumedha tumhe kiṃ naṃ jānātha, dīpaṅkaro nāma satthā paramābhisambodhiṃ patvā pavattavara dhammacakko janapada cārikaṃ caramāno anukkamena amhākaṃ nagaraṃ patvā sudassana mahāvihāre paṭivasati. Mayaṃ taṃ bhagavantaṃ nimantayimha tassa bhagavato āgamanamaggaṃ sodhemāti. Taṃ sutvā sumedhapaṇḍito cintesi. Buddhoti kho panesa ghosopi dullabho, pageva buddhuppādo tena hi mayāpi imehi manussehi saddhiṃ dasabalassa āgamanamaggaṃ sodhetuṃ vaṭṭatīti so te manusse āha, sace bho tumhe imaṃ magga buddhassa sodhetha - sayahampi ekaṃ okāsaṃ sampaṭicchatvā ayaṃ sumedhapaṇḍito mahiddhiko mahānubhāvoti jānantā dubbisodhanaṃ udakasambhinnaṃ ativisamaṃ ekaṃ okāsaṃ sallakkhetvā imaṃ hakāsaṃ tumhe sodhetha. Alaṅkarothāti adaṃsu.