Dedicated in May 1924 by the Buncombe County Commissioners, Craggy was one of 51 county prisons for which the state assumed responsibility with the passage of the Conner bill in 1931. It was one of 61 prisons renovated or built during the late 1930's to house inmates who worked building roads.
Still operating in the old prison is a Correction Enterprise laundry. Eight Enterprise employees supervise 52 inmates who wash daily about 36 loads, with each load containing 200 sets of inmate uniforms, in six industrial sized machines. Inmates may be assigned to Department of Transportation road crews or as maintenance or kitchen help at the prison.