The Prince of Wales reportedly instructed the Duchy of Cornwall not to count the rent as part of his private income, with the funds set to benefit residents of Princetown and the surrounding area.
Explaining the decision, Prince William's private secretary, Ian Patrick, said the Prince had seen the impact the prison's closure has had on the community.
"The Duke has seen first-hand the impact that the prison's continued closure is having on the local community and believes it is right that this money should be used to help the area build for the future while uncertainty remains," Patrick said.
He added that the move reflects Prince William's belief that the Duchy of Cornwall should "be a force for positive impact in the communities it serves."
Dartmoor Prison, a Category C prison in Princetown, has remained closed since 2024 after elevated levels of radon gas were discovered. Although the facility is no longer operating, the Ministry of Justice continues to pay rent under a lease agreement that runs until 2033.
The Duchy of Cornwall now plans to establish a community fund that will support local businesses, create opportunities for young people, and finance environmentally sustainable projects.
Patrick said Prince William understands how important the prison has been to the town for generations.
"For many people in Princetown, the prison has long been part of the fabric of the community," he said. "Its closure has created genuine uncertainty, not just about jobs and businesses, but about the future of the town itself. The Duke felt strongly that, while those questions remain unanswered, the benefit of this income should remain in the community, helping local people shape that future."
The Duchy's latest financial accounts also show that Prince William received a private income of £21.6 million during the 2025-26 financial year and paid £7.76 million in tax over the same period.
