The Australian government is considering housing asylum seeker children in the Curtin immigration detention centre in the far north of Western Australia.
Derby West Kimberley Shire said the Department of Immigration recently notified it about possible plans to move families to the remote detention centre.
The Australian newspaper has reported that preparations are being made to fence off and modify part of the centre to house family groups.
There are also reports that Curtin could be declared an "alternative place of detention" to get around a commitment by the federal government not to keep children in detention centres.
The ABC reports long time observers of immigration detention processes are expressing shock at the announcement.
Curtin is in a remote and isolated area. It was the site of mass riots, lip-stitching protests and escapes after it opened in 1999 until it closed three years later. It was subsequently re-opened, and currently houses single men.
Immigration Minister Brendan O'Connor said conditions at the centre are not as bad as people think, but has refused to speculate on whether children will be sent to the site.
Opposition border protection spokesman Michael Keenan said the Government was having to consider the option because the detention system is "completely overloaded".
