Premier Peter Gutwein met opponents of the $270 million Northern Regional Prison at Westbury and outlined a critical consultation process on Thursday.
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"As Premier I thought it was important that I engaged with the community and I'll be looking to understand their issues," he said
The government's preferred site for the prison in an industrial area about 2km out of Westbury is strongly opposed by some members of the community.
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Mr Gutwein said that an independent Social and Economic Impact Study would feed into decision-making.
"Our position on this has been that this is the preferred site and we will work through the process," he said.
Two community surveys will be undertaken as part of the Study being done by SGS Economics.
Corrections Minister Elise Archer said there would be a mailed out questionnaire to residents and businesses in the Meander Valley region.
"The mail out will go to resident/ owner occupiers of properties in the Meander Valley municipality " she said.
"All residents of the Meander Valley will be able to request a survey if they don't receive one."
Ms Archer said there would also be a phone survey of 500 residents in the 7303 postcode area.
"That is important because it not only encompasses Westbury but Birralee and Exton who are closest to the preferred site," she said.
Ms Archer requested the phone survey, which be done in February, after talking to residents. He said the Social and Economic Impact Study would be publicly released and would be used to inform the community. He declined to say when Cabinet expected to make a decision on the prison site.
"We will work through that process ...and when we can provide clarity on the project commencement, or not, we will,' he said.
Mr Gutwein said he had spoken to people in Westbury on Thursday morning and the response had been positive to the project.
Prison opponent Phil Giles said the process under which Westbury became the preferred site was his main concern.
"There was no chance for the rest of Tasmania to put forward their own places, the (Meander Valley) council put up Westbury as a site without giving anyone else a chance."
Emma Hamilton said she was pleased Mr Gutwein had come but said some stakeholders had not been invited.