There is not a lot of support in Westbury for the new $270 million Northern prison, Labor leader Rebecca White says.
Ms White said Labor would do its own community consultation to determine the level of support for the development, planned for the Westbury industrial precinct.
She stopped short of opposing the location for the new prison.
The government plans to hold drop-in sessions in Westbury in the next fortnight about the prison.
"A lot of people in Westbury didn't know their town, which is a very, quiet, peaceful rural town, had been identified as the sight for a northern prison," Ms White said.
"The Labor Party will be doing its own consultation with the community of Westbury because the government has failed to."
Ms White said the government should have consulted the Westbury community before announcing the location not handed out "glossy" brochures and promising consultation.
"What we're hearing very clearly is that they've worried by this," she said.
"I'd say there's not a lot of support in the community of Westbury for having a prison on its doorstep and the government need to listen to that."
Corrections Minister Elise Archer said Labor had no policy to "invest in new prison infrastructure to keep Tasmanians safe" and said they had launched a "scare campaign, devoid of any facts".
"At the last election, Labor refused to back a new Northern prison and also refused to commit to employing even one single extra correctional officer," Ms Archer said.
"The new Northern Regional Prison will not only generate significant, ongoing employment in the State's North and North West, but also help facilitate better outcomes for prisoners. The new facility will be one of the most secure prisons in Australia."