Former Grafton Correctional Centre
Completed: Repurposing the former Grafton Correctional Centre site to deliver better social, health and economic benefits to community.
Repurposing the former Grafton Correctional Centre
Property and Development NSW (PDNSW) has repurposed the former Grafton Correctional Centre site to deliver better outcomes for the community.
The 130-year-old gaol closed in 2020 following the opening of the new, fit-for-purpose Clarence Correctional Centre at nearby Lavadia.
In late 2023, Clarence Valley Council approved PDNSW’s application to subdivide the site to enable its plans to:
- transfer part of the site to the Grafton Ngerrie Local Aboriginal Land Council (LALC) to support better outcomes for the local Aboriginal community
- transfer part of the site to NSW Health for future service delivery as part of the Grafton Base Hospital redevelopment, and
- explore ways to repurpose the remaining parts of the site, including the adaptive re-use of the heritage buildings and spaces to support the region’s economic growth.

Transfer to Grafton Ngerrie LALC
In January 2024, the NSW Government returned a portion of the former correctional centre site, comprising the gaol’s old market garden and industrial buildings to the Grafton Ngerrie LALC, resolving an Aboriginal land claim. This also allowed the Government to undertake works to enable the adaptive re-use of the remaining portions of the former correctional centre site.
The Grafton Ngerrie LALC site will be used to serve the wider community and provide much-needed job and training opportunities for local Aboriginal people and the broader Clarence Valley community.
Transfer of north-eastern part of the gaol to Health Infrastructure NSW
In January 2025, NSW Health acquired two administration blocks on the north-eastern corner of the gaol.
The buildings will be refurbished to provide contemporary administrative, office and training support facilities for the redevelopment of the adjacent Grafton Base Hospital. NSW Health’s development application for the buildings’ refurbishment has been approved and work is expected to start in 2025.
Heritage precinct
An international Expression of Interest (EOI) campaign was launched on 15 March 2024 seeking proposals to acquire and repurpose the historical, state heritage-listed portion of the site (the former maximum security section).
The parts of the site subject to the EOI included the gaol’s landmark gatehouse entrance, central courtyard, 3 cell blocks, a guard station, amenities block, reception area and the Governor’s office. The heritage significance of these buildings means they must be preserved and reused in ways that ensure the site remains a historic centrepiece in Grafton.
The EOI campaign closed on 24 April 2024 and, following a comprehensive review of the submissions, the Government has decided not to progress the EOI in its current form.
Corrective Services NSW is considering options for the future of the maximum security portion of the former Grafton Correctional Centre and managing enquiries.
Background
The state heritage-listed former Grafton Correctional Centre (Old Grafton Gaol) operated between 1890 and 2020 as a medium security prison for men and women.
It was closed as it was no longer fit for purpose and surplus to Corrective Services NSW’s requirements following the opening of the new Clarence Correctional Centre.
Corrective Services NSW engaged PDNSW to investigate options and potential opportunities to repurpose the site.
Following extensive consultation with Clarence Valley Council, the local community, and Grafton Ngerrie LALC, PDNSW reached agreement on a plan to subdivide the former Grafton Gaol site, creating better outcomes for the community.