Corrections Minister Elise Archer said she will visit the Westbury community soon to consult on the planned Northern prison project.
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Labor has accused the government on blindsiding its residents after it selected an industrial property near the village as its preferred prison site.
Ms Archer denied the claim and said she planned to visit community members to discuss concerns.
"Community consultation could not begin until a preferred site was determined to be able to consult on," she said.
"All it is is a preferred site. This is the very start of a process.
"The residents and businesses of Meander Valley can be assured we are listening and responding to their concerns.
"We believe the project will be a positive for the broader region."
Westbury Region Against the Prison organiser Heather Donaldson said Westbury residents would welcome the opportunity to meet with the minister.
"WRAP would be happy to convene a meeting with her at a time and place to suit her," she said.
Labor stepped up its attack on the government over the prison site in Parliament on Tuesday.
When questioned on where Labor would like to see the prison located, party leader Rebecca White said the Opposition wanted to see the shortlist of ten sites held by the government before it made a decision.
She said nine other communities needed to know their area was considered as a prison location.
"What we've seen in Westbury is a community that wasn't told that they would get a prison and have reacted very angrily to that information," Ms White said.
"The government should abandon its plans to build a prison in Westbury because there is clearly not community consensus."
The government says the shortlist contains commercial-in-confidence information.