Premier Paul Okalik's government will spend just under $1.2 million to build a women's correctional facility, CBC News has learned.

Okalik, who is also Nunavut's justice minister, said Friday that the small facility will house about eight women, both those on remand and others serving light sentences.

"It will be in the grounds where the Baffin Correctional [Centre] is," he told CBC News on Friday. "It's very useful to have it there because in the event of emergencies, staff are readily available from the other facilities.

"As well, we can share facilities, like cooking or laundry services," he added. "So we're utilizing the facilities that we do have now and reducing costs in the long run."

The new women's prison, which will be staffed by seven employees who will also work at the Baffin Correctional Centre, will be up and running within the next year or two, Okalik said.

Female inmates are currently being held in a trailer located next to the territorial jail.

The temporary facility was set up last year, following complaints about women in custody being housed in holding cells at the RCMP detachment and the Iqaluit courthouse.