It is not "Westbury or bust" for Tasmania's new jail, Premier Peter Gutwein says.
The naming of a site in an industrial precinct about 2 kilometres from the Northern town as the government's preferred location for the new jail led to controversy.
Asked how confident he was a new jail would be built near Westbury, the new Premier said: "A new prison will be built in the North".
He said Westbury remained the preferred site and the government was working through the process and consulting the community.
Mr Gutwein was asked if it was "Westbury or bust" for the new jail because a successful Westbury "no" campaign would embolden opponents of any other potential site.
"We're not talking Westbury or bust," Mr Gutwein said.
"What we've done so far is we've said that that would be our preferred site.
"The Attorney-General (Elise Archer) has engaged with the community there; we're working through a range of matters.
"I think the social and economic impact study is under the way at the moment and as we work through that process we'll get to a point where a final decision will be made."
Ms Archer has stressed a final decision on location has not been made.
Labor urged Mr Gutwein to drop the Westbury option.
Lyons Labor MHA Jen Butler said Mr Gutwein had claimed compassion as a cornerstone of his government and the Westbury issue was his chance to prove it.
"The community has made it abundantly clear that they do not, and will not, support building the prison in their town," Ms Butler said.
"An independent survey undertaken by an academic from James Cook University found that eight out of 10 Westbury residents oppose the prison.
"People in Westbury are distressed by the prospect of this prison in their town, and distressed by the contempt with which the government has treated them.
"Peter Gutwein says he wants to bring compassion to the job of Premier.
"If that's true he will put an end to this distress by ruling out Westbury as a site for the Northern prison."