Wellington Prison returns to service on Monday after being closed for nearly a year.
The 82-year-old facility, also known as Mt Crawford Prison, is reopening less than a year after it closed, because of a rising prison population.
The Corrections Department says the 120 beds at Wellington Prison are urgently needed and will all be in use within three weeks.
It says the re-commisioning cost has been minimal, as the prison was maintained while it was closed.
But Allan Probert, chairman of the local group Enterprise Miramar Peninsula, says re-opening a decrepit facility in the middle of some expensive real estate in the centre of the city seems a rather shortsighted decision.
He says that area could be a jewel for Wellington, which could create a lot of employment and tourism.
