The watchtower was closed 13 years ago because of safety concerns, but after a three-month construction was reopened on Wednesday.

Project manager Mike Blake said the newly refurbished feature enhances the heritage of the Gaol.

"It's another step towards restoring the whole site," he said.

"It enables people to use and see another part of the product.

"It's an amazing place the Gaol, it's very underrated and people really don't appreciate what happened here and how tough it was."

About $78,000 was spend on repairing the stairs, roof and timber walkway and floor of the watchtower.

Displays in the watchtower tells of its history and the stories of prison escapees.

The watchtower allowed the guards to have a view of the Gaol and "keep a beady eye on the prisoners," Mr Blake said.

The Office of Environment and Heritage provided a $250,000 grant for the repairs of the Gaol and Dubbo City Council also chipped in for a total $300,000 grant.

Mr Blake said the Gaol is one of the most intact and used heritage-listed, Hay-style Gaols.

He said the site has been renovated by a great team and will provide an excellent feature for visitors.

"It's taken a lot of work, but it was great to get the grant and get the watchtower refurbished," he said.

"When people that are working on the site all understand what needs to be done you're going to get a good result."

Looking into the future Mr Blake said the next step would be to refurbish the damaged stonework around the Goal.

The introduction of multimedia features to the Gaol self-tours are also being explored.