The Corrections Department no longer plans to build a community work centre in the main shopping centre of Flaxmere in Hastings.
About 100 people attended a public meeting on Monday night to oppose the department's plan to build in the middle of the suburb.
The department says it will take the community's view on board. It says the 500 square metre building was to be a central point for convicted people to complete their community work.
Flaxmere ward member Henare O'Keefe says the meeting was a small victory.
Corrections says it plans to look for an alternative site with the help of the district council.