The New Brunswick government is replacing the outdated Moncton jail with a $40-million facility, but the new correctional centre will be 25 kilometres away in Shediac.
Supply and Services Minister Ed Doherty said work will start in the fall on the 8,156-square-metre jail.
The new facility will include three sections with 30 cells in each, and it will be located on a 24-hectare property in Shediac that the province bought for $112,500.
"Replacing the Moncton Detention Centre has been a priority for some time, and we are very pleased to take the next step in this important project," said Public Safety Minister John Foran in a statement.
Foran said the new jail will be operational within two years.
He also said the centre will be designed to achieve new environmental standards for energy efficiency.
Shediac is a coastal town in southeastern New Brunswick. It is roughly 25 kilometres from Moncton, where a new courthouse is being built.