It is the third site that has been announced for a proposed prison in Meander Valley.

Justice Minister Elise Archer made the announcement on Thursday morning and released a community consultation report regarding Ashley, which showed the majority of respondents were opposed to the proposal.

Despite this negative feedback, the government has decided to start due diligence investigations on Ashley as the only site it is consideration for the maximum security Northern Correctional Facility.

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Ms Archer said there was "an encouraging level of community support" for Ashley and promised that the prison would be "modern, fit for purpose [and] secure" with a focus on rehabilitation and reintegration.

It is the next stage in four years of debate and discussion regarding the location of a prison, which was first proposed in the industrial state on Westbury's northern fringe, then moved two kilometres up Birralee Road to a bush block in September 2019 after community concern.

That land encountered strong opposition from neighbours and environmental groups, with the presence of a range of listed species including masked owl, Tasmanian devil and green and gold frog, along with flora.

Due diligence work started regardless, including core test drilling.

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In September last year, the government announced Ashley would be closed within three years following a series of allegations regarding child sexual abuse, to be replaced by separate "therapeutic" centres in the North and South.

Three months later, it was announced that the surrounding communities - including Deloraine - would be consulted regarding the use of Ashley for an adult prison.

The government released the consultation report on Thursday, which showed that of the 125 written submissions, 50 per cent were against the use of Ashley for an adult prison, 43 per cent in favour, and 7 per cent not wanting a prison located anywhere at all.

Landowners located within a two kilometre radius were asked to provide feedback. Of those, 12 neighbouring were supportive, 13 were against, and eight did not respond.

The consultation phase also included 16 individual sessions totalling 53 hours, during which 143 people attended.

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The positives pointed to economic stimulus for the area, employment and maintaining a custodial facility. The negatives included local safety, property values, traffic volume on Meander Valley Road and the stigma for Deloraine and surrounds.

In the report, the Department of Justice stated that the majority negative responses was not unexpected.

"It is more likely that people opposed to any proposed change will be more motivated to respond to a request for feedback than those who are in favour or are neutral or disinterested," the report reads.

The consultation report stated that "no substantially new issues" or concerns were raised during the process that had not already been raised during the feedback stage in Westbury.

"It has reiterated the broad concerns that have been raised previously in relation to having a correctional facility in the wider area, while also highlighting the AYDC site itself," the report reads.

"It is also clear that, for a proposal of this nature, there is an encouraging level of support for the AYDC site to be considered."

The government's initial decision to put a prison on the edge of Westbury - prior to widespread consultation - responded in opposition groups emerging.

Westbury Region Against the Prison will now end its campaign following the government's decision to only consider Ashley for the prison.

WRAP president Linda Poulton said it had been a "hard and divisive" journey for the group.

"The amenity and character of our town have been preserved, not just through our efforts but because the two sites we campaigned against were bottom of the barrel choices," she said.

"This backflip on the prison mirrors the backflip on the Burnie Court. It shows that no good decisions are made in a hurry and without consultation.

"We sincerely hope that any Northern "correctional" facility proposed in future will have rehabilitation as its core focus, not punishment."

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