The $350-million medium security prison expansion stalled when construction group St Hilliers went into voluntary administration in May last year.

The project's community advisory group chairman Bill Jones said about 600 workers would repair damage caused by animals while the project was halted and continue construction.

"At the moment my understanding is that there are about 100 workers and during the next couple of months that will go to 600 and then it will taper off again," he said.

"The contractors are trying to get as much work done as they can while the weather is good and their intention is to put on as many people as possible.

"There are buildings there that are very close to complete and there are buildings that have just been started so there has to be a lot of progressive roll-out of people and contractors as buildings become available.

"The state would want this prison up and running within the time constraints that were agreed to because the prison system is short of beds."

Mr Jones said the Hopkins Correctional Centre would be a 'world class prison'.

He said the prison would have a multi-faith centre, health care facility, education centre and an expanded industry section teaching prisoners furniture and steel fabrication, as well as how to make number plates.

"We know that people have to have their liberties curtailed for committing a crime but that shouldn't stop us from improving their education, their social skills and giving them the skills to be productive when they return to the community," he said.

"The normal view of a prison is a row of cells and people are locked up and that is a very brutal way of looking at it wherever possible we know it is better to have prisoners living as normally as possible."

Ararat Rural City Council chief executive Andrew Evans said the prison expansion would be the 'cream on the cake' for the city's economy.

"We are already seeing the benefits with all the extra people around town spending money with people in our pubs and cafes," he said.

"While we have only seen the front edge of it, we are going to see a huge ramp up of that activity, which is a great thing for a town like Ararat.

"I think it provides a confidence lift for the town as well because we know that the prison project will bring not only construction jobs but other jobs at the other end.

"As that comes closer, there will be more movement in the real estate market and more families coming to town."