William Head Institution was first intended and used as a quarantine station from 1881 until 1958.  The William Head Institution became a minimum security Federal penitentiary in 1959.  Since then William Head Institution has been redesigned  as a stand alone minimum security Federal institution housing upto 200 adult male inmates.

Source:  
http://www.csc-scc.gc.ca/institutions/001002-5009-eng.shtml