There were problems providing clean bedding and clothing for prisoners and many mattress covers were stained and mouldy.
"Prisoners in the high-security units were washing clothing in buckets," the report said.
The investigators surveyed prisoners and 43 per cent reported they had been assaulted, although one-third of assaults were unreported. About 48 per cent said they had been bullied.
However, Judge Boshier said there were some good aspects to the institution, particularly its efforts to establish itself as a working prison.
He has made a number of recommendations, which will need to be reported back on within six months.
Chief custodial officer Neil Beales says Hawke's Bay Prison is challenging because of the high numbers of gang members.
"Gang participation accounts for a significant proportion of violence both in prison and the community," he said.
Many of the Ombudsman's recommendations were being acted on and Beales said it was also pleasing to see there were many positive aspects in the report.
- AAP