Some European Penal Colonies
The State (colony) of Georgia was started with the intended purpose of being a penal colony for debtors (a debtors-prison of sorts).
The British used colonial North America as a penal colony through a system of slavery. Merchants would transport the convicts and auction them off to plantation owners upon arrival in the colonies. It is estimated that some 50,000 British convicts were sent to colonial America and the majority landed in the Chesapeake Colonies of Maryland and Virginia.
Bermuda was also used to house prisoners.
It's interesting to note that New Zealand and Australia are now so heavily locked down right now that the people there are once again imprisoned.
See also: New Zealand's dark secret: Many of us are descendants of Australian convicts
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