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A penal colony or exile colony is a settlement used to exile prisoners and separate them from the general population by placing them in a remote location, often an island or distant colonial territory. Although the term can be used to refer to a correctional facility located in a remote location, it is more commonly used to refer to communities of prisoners overseen by wardens or governors having absolute authority.
Historically penal colonies have often been used for penal labour in an economically underdeveloped part of a state's (usually colonial) territories, and on a far larger scale than a prison farm.