The state’s newest prison will be built in the Pillar Valley to the south-east of Grafton.
Grafton prison has been operating as a remand centre since it was closed as a maximum security facility in 2012.
The 600 bed prison will boost employment in the town, providing around 300 jobs in the construction phase and around 250 ongoing jobs. Minister for Corrections David Elliot says it will be operated as a private-public partnership.
“This new modern facility will have latest security and surveillance technology and is a long-term investment in this region,” Mr Elliott said in a statement on Tuesday.
The announcement comes as the prison population continues to rise. Figures from the NSW auditor-general show the average daily prison population has climbed from 9829 to 11,011 in the past 12 months.
The new prison is expected to open in 2019.
