Up to 600 jobs are expected to be generated by the proposed new 1500 bed facility at the existing Waikeria Prison in Waikato.

The new facility makes up a large portion of the Government's plan to spend one billion dollars on 1800 new prison beds around the North Island.

Waipa District Mayor Jim Mylchreest said it is great for growth in the area and because they have early notice they will be able to prepare accommodation for the influx of workers.

"It supports our community's views early on that this location is suitable for the expansion projects that have been contemplated. We're very pleased to see it's coming to our locality."

Mr Mylchreest was upset at the more than 200 jobs that were cut from the prison between 2014 and 2015 when the high security closed down but he says this is justice for those who lost their jobs.

He said from their perspective it always made sense to expand at Waikeria.

"As far as a growth opportunity for Waipa and Te Awamutu, in particular, it's good news."

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