B.C.'s new 360-cell prison will be built in the Okanagan Valley on Osoyoos Indian Band territory, Premier Christy Clark announced Monday.

The facility carries an estimated $200-million construction cost, and will be located between Oliver and Penticton in the Senkulmen Enterprise Park on Highway 97.

Clark said the facility will "not only protect families and keep them safe, but create stable long-term jobs for families right here in the Okanagan."

The government expects the completed jail to be run by 240 full-time employees.

The premier was joined by Chief Clarence Louie and Attorney General Shirley Bond, who said the state-of-the-art jail will be "much more than just a corrections facility," and could contain an educational component.

Oliver Mayor Ron Hovanes told ctvbc.ca the community has had high hopes for a new prison in the area, and Chief Louie's bid to host the proposed prison was endorsed by town council.

"There's been no negativity towards the proposal. We're very much a tourist Mecca, but we could still use jobs badly," Hovanes said.

NDP public safety critic Kathy Corrigan said she's pleased at the announcement, but called it "long overdue" action by a government in "catch-up mode."

"It's going to be three to five years before this prison is built, and we're already at a crisis point in terms of overcrowding," Corrigan said.

The ratio of inmates to corrections officers has increased over the years, Corrigan added, leading to escalated tension and more violence in prisons.

The BC Liberals have promised to add 330 new cells spread to three jails in the province, but Corrigan worries not enough money is being spent on new guards.

"We have to look at ways to alleviate the pressure on officers," she said. "Measures need to be taken now."