Residents in the Hastings suburb of Flaxmere say they will not give up their fight to stop the Corrections Department building a community work centre near the main shopping centre.
The department met residents in January and agreed to look at alternative sites.
But Flaxmere Planning Committee chairwoman Kayren Hatherell says the department has now decided to stick with the original site.
She says a meeting of 200 residents on Monday night voted unanimously to fight the decision.
Ms Hatherell says residents plan to mount an all-day protest on Friday at the site of the intended centre.