A new rehabilitation facility will be established in Brewarrina at the site of the former correctional centre.
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Brewarrina Correctional Centre was closed last year.
Ownership of the site will now be transferred to the Local Aboriginal Land Council and the Brewarrina Shire Council. Council will lease its portion to Orana Haven to be used a drug and alcohol rehabilitation facility for women.
"This is a great result for the people of Barwon, bringing much-need jobs and investment to a drought-impacted region," Minister for Corrections Anthony Roberts said.
"It's also a win for residents because the transferring of the Brewarrina site ensures it is preserved entirely for community use for the next 15 years."
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Member for Barwon Roy Butler said the rehabilitation facility would have beds available for Indigenous and non-Indigenous women. He said children up to the age of 12 could also be part of the program.
The current Orana Haven Rehabilitation Facility services between 150 to 200 people each year. It employs 10 fulltime staff.
Meanwhile, Mr Roberts said lease negotiations between the Ivanhoe Correctional facility and Tronox Mining were progressing positively.
Mr Butler said the outcomes at both facilities had been a concentrated effort.
"I thank Minister Roberts for listening to my calls to repurpose these facilities so the economic activity in Brewarrina and Ivanhoe can be maintained, or indeed expanded," Mr Butler said.
"Both projects will provide significant benefits to the Barwon region and I'm very pleased with the result we have been able to achieve; these projects will herald a new era for the towns."
Mr Butler said there would be plenty of direct and indirect employment as a result of the repurposing.
When the closure of the correctional facilities were announced in 2019 a spokesperson for Corrective Services said Brewarrina and Ivanhoe were two of the smallest correctional centres and housed a combined 45 inmates.
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