The Institution (medium-security) began operations in 1877, making it the oldest running federal prison in Canada following the closure of Ontario's Kingston Penitentiary on 30 September 2013.

[4] Lands were expropriated in 1872 at Stony Mountain, Manitoba, some 18 kilometres (11 mi) from Lower Fort Garry, where Sir Garnet Wolseley’s expeditionary force had been stationed as part of the effort to quell the first Red River Rebellion of 1869-70.

Stone for the windowsills and the corners was quarried at Lower Fort Garry, dressed and hauled overland during the winter.

Despite efforts to avoid wastage due to difficulties in transporting materials, by the time the facility was completed, the final cost was $125,000—some $9000 over budget.

[5] On 15 August 1877, with Lord Dufferin (the Governor General of Canada) and his wife Hariot Georgina presiding, the Manitoba Penitentiary was officially opened.

[2][6] 14 inmates, including a female "lunatic," comprised the original prison population transferred from Fort Garry.

[2] The entrance to the institution was via the "South Gate"—a handsome two-storey structure that controlled vehicular and pedestrian traffic.

Due in part to the Depression and the Second World War, this building was left in a partially completed state for many years.

For the 1967 Pan American Games in Winnipeg, inmates created much of the equipment in 1965, including the mats, target frames, and the winner's podium for the swimming pool.

[2] In 1982, four maximum-security inmates, armed with improvised knives, jumped four guards, bringing them into a cell block with more than 30 other prisoners.

[7] Stony Mountain Institution is a clustered site, housing maximum, medium and minimum security inmates.

[1] In November 2010, the federal government announced that Stony Mountain would be undergoing an expansion, which added a maximum-security wing to the institution, with 96 new beds.