Brockton council has pushed ahead the development of the Walkerton jail.
The municipality has rezoned the 140-year-old building to a "central business district" from an "institutional" land, meaning it can be used for both public and commercial purposes.
Those changes will allow the development of the jail, which has been in the works since the facility closed in 2011.
The County of Bruce, which still owns the jail, is still negotiating the sale of the correctional facility to an unknown private buyer.
Reports suggest the group plan to turn the jail into a motel, with a restaurant and gift shop.