North-West Minister Ernie Bridge has moved to reassure Wyndham residents that there are no plans to close the Wyndham regional prison.
Mr Bridge said he was concerned that unsubstantiated rumours suggesting the prison would close were causing unnecessary fear and worry for local residents.
"Wyndham prison is one of the major employers in the town and plays an important role in the economy of the region," he said.
"I have checked with the Minister for Corrective Services, and have been advised that there is no change to the Government's policy regarding the prison. It will remain open."
Wyndham regional prison houses up to 58 minimum security prisoners in dormitory-style accommodation. It also contains a maximum security area for up to six prisoners, mainly people remanded to appear in court.