In the Oamaru District Court on Wednesday, Shelley Lee Williams, 37, of Oamaru, was sentenced to nine months' jail, in a men's prison, for three charges of assault, despite a request for a home detention sentence.
The transgender woman's defence counsel, Ngaire Alexander, told the Otago Daily Times she could not comment on whether her client would apply to move to a women's prison.
Corrections Minister Anne Tolley said changes were made in response to concerns about transgender prisoners' safety, and a request from the Ombudsman to reconsider its policy.
Under previous Corrections policy, only those who had completed gender reassignment surgery had the option of being placed in the prison of their identified gender.
Transgender women in men's prisons could choose to be placed in segregation, resulting in exclusion from recreational, educational and occupational opportunities.
Transgender lawyer Kelly Ellis - the newly-selected Labour candidate for Whangarei - said segregation was "utterly inhumane" and, in many cases, led to self-harm.
Ms Ellis said the policy changes were a step in the right direction, but she held concerns for transgender women still housed in men's prisons.
It was "inevitable" they would be sexually assaulted or raped while housed with men, she said.
University of Canterbury sociology professor Dr Greg Newbold said many transgender women preferred to spend time in men's prisons.
Dr Newbold, who served a prison sentence in the late 1970s, said in his experience, most of the transgender prisoners took boyfriends and prostitution was common.
"Men fall in love with them," Dr Newbold said.
Transgender prison relationships did not come without troubles, he said.
