Following a recommendation of the
Royal Commission into New South Wales Prisons (1976–1978), a prison was established at Parklea and initially designated as a maximum-security prison. The prison was scheduled to open in October 1983, but following a scandal involving
Rex Jackson, the opening did not take place until September 1985, although the first inmates were received in November 1983. The Centre opened with about 220 maximum-security inmates with about the same number of prison officers.
1st riot (1987) On 13 December 1987, prisoners began a
disturbance that was attributed to the consumption of "
gaol brew" alcohol from fermenting fruit and sugar. During the riot, ten prison officers were injured, one officer was struck over the head with a typewriter, and several required transport to hospital. A subsequent review of procedures resulted in the withdrawal of oranges and sugar from all NSW correctional facilities.
2nd riot (1990): down-grading to medium-security A second riot occurred on 23 September 1990, following the introduction of a restrictive policy for prisoners private property by
Minister for Corrective Services Michael Yabsley. The incident caused massive damage to the gaol and a number of other prison institutions across the state who rioted in protest against the policy. Lockdowns in the prison system occurred across the state, which led the
Australian Human Rights Commission to describe the conditions in NSW as "a very serious violation of human rights". A large number of prisoners remained locked in their cells for one month following the riots. In 2001 Parklea was reclassified to maximum security, and inmate numbers were expanded as an additional 92 cells were completed. While the privatisation of Cessnock was eventually ruled out, on 30 September 2009 it was announced that
GEO Group Australia had been awarded the contract to manage Parklea Correctional Centre, commencing on 1 November 2009. In March 2025, it was announced that by October 2026, the facility would be returned to government ownership. ==Current operations==