One of the oldest prisons in NSW is up for sale

With hundreds of years' worth of stories behind its sandstone walls, Berrima Gaol is now up for sale.

The heritage-listed site has tales of prison breaks, guards murdered on duty, and was even home to bushrangers.

Now, the correctional centre in the NSW Southern Highlands could be reimagined as a boutique hotel or hospitality venue.

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"It could make a great Airbnb, great for tourism, great for hospitality, would make a great pub, could be a club, a restaurant, could be a cultural centre," Frank Oliveri, from commercial real estate group Colliers, said.

Berrima Gaol was built in the 1830s by convicts and has seen nearly 200 years of Australia's history.

One of the country's first serial killers, John Lynch, who murdered 10 people between 1836 and 1842, was hanged at the prison's gallows.

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More recently, corrupt former cop Roger Rogerson completed a three-year sentence at the facility in the early 90s.

Disgraced former Labor minister and convicted criminal Eddie Obeid also spent days working in the prison library writing his memoirs.

The prison closed last year, and the site is now deserted.

Eric Savage from the Berrima Residents Association said the development needs to respect the history of the site.

"For various reasons, Berrima was frozen in time and I think any development needs to be respectful of that profile of Berrima," he said.

Melinda Pavey, NSW Minister for Water, Property and Housing, said it "will go to the bidder who can maintain the incredible heritage of this site".

The property will need to be rezoned and the buyer must keep certain heritage features including the external walls and gates.

Expressions of interest are now open to buy the prison. It is expected to sell for somewhere between $5 and $10 million.

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