Stewart Murray Wilson is back in the house on the grounds of Whanganui Prison.
The convicted sex offender is on GPS monitoring and will be supervised if he leaves the house, says the Corrections Department.
Wilson was released back into the community yesterday after receiving parole in December.
The house was originally moved to Whanganui Prison grounds when he was first paroled in August 2012.
His release caused an uproar, with Wanganui District Council making an unsuccessful legal bid to stop the move and there was an attempt to trespass the 67-year-old from some parts of the city. In February 2013 he was recalled to prison from the house after breaching parole conditions by phoning a vulnerable woman he was barred from speaking to under strict release conditions.
Wilson was placed in the house originally because Wanganui was deemed one of the few places in the country where there were no victims and his location in the prison grounds is away from close neighbours.
The remaining two years of his sentence will be completed on parole, during which he can be recalled again if conditions are breached and "presents signs of elevated risk to the community", Corrections said yesterday.
Wilson has been offered rehabilitation support, the department said.
Community leaders and his registered victims have been informed of his return to the house.
Wilson was jailed in 1996 for 21 years for serious sexual and violent offending against women and children involving cruelty to children, stupefying adults and bestiality.