People against the proposed prison site at Birralee Road took to Launceston's Civic Square on Saturday to show their opposition at an information rally.

NTDC recognised the opposition to the project from some residents but Mr Baker said it would provide much needed investment in the region and provide 733 jobs in stage one.

"[An] analysis commissioned by NTDC from the National Institute of Economic and Industry Research shows stage one alone will deliver about $160 million in economic output for Meander Valley," he said.

"The $270 million project will create hundreds of jobs in construction over the next 10 years.

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"However, it is the multiplier effect of that investment where the Meander Valley and greater Northern Tasmania can really benefit.

"The total value of those extra jobs...is an additional $35 million per year from the first year of operation, increasing to $62 million per year by the time it is fully operational."

He said once operational the prison would employ 250 people permanently.

The opposition against the site lies in the lack of consultation before the announcement of the preferred site in September last year and the perceived impact on the town.

The proposed prison is planned to be built in two stages, with the first stage to be completed in five years to house 140 prisoners. Before it's planned to be fully operation within 10 years and able to house 270 inmates.

Tasmania's Regional Development Australia chief executive Craig Perkins said the site's access to transport, power, water and sewerage in the industrial zone were an advantage.

"Almost half the prison population is from the north of the state, and creating a better support network leads to better rehabilitation outcomes and lower recidivism rates," he said.

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