The troubled ACT Health-run facility, located within bushland in Canberra's south-west, was custom-built to provide a culturally appropriate environment and suitable facilities for Indigenous people recovering from alcohol or substance abuse.

However, the farm's beds have been empty since it was opened in 2017, after it was found that zoning laws did not allow for some important clinical services to be provided. The facility is now only used for clients who are bussed in during the day.

The potential for more diversified use of the farm's unused residences was initially raised by former integrity commissioner Phillip Moss in his independent investigation into the death in custody of Indigenous remandee Stephen Freeman.

"This facility could have been a suitable placement for Steven Freeman following his assault at the AMC [the Alexander Maconochie Centre]," Mr Moss said in his report.

"The inquiry heard from the Aboriginal community that the initial eight beds at the new facility may not be sufficient, particularly if it is an option for those on bail."

The ACT Inspector of Correctional Services, Neil McAllister, has also flagged merit in the same idea in his report into the care and management of remandees at the AMC.

His report was tabled in the ACT Assembly this week.

"We note that there are eight unused beds at the [farm] that could, in theory, be used to divert some Indigenous people from serving time on remand at the AMC and avoid the social and economic costs that are attached to imprisonment," Mr McAlister said in his report.

The fully staffed farm has two four-bedroom units, and each of the bedrooms have ensuite bathrooms.

There are disabled facilities, a large common area with a well-appointed kitchen and even a children's play room.

"Given the pressure on the prison facilities, it would make sense for the goverment to explore all the practical options available to it to ease that pressure," Mr McAlister said.

"While the bush healing farm is not a Corrections facility, it was funded by the ACT government to provide accommodation, and that accommodation is not being used.

"In theory, if a deal could be worked out, then this facility could be a residential option for Indigenous men or women who are granted conditional release by the courts but for varied reasons cannot return to their home."

The future of the bush healing farm is in limbo after the ACT aboriginal health service Winnunga Nimmityjah declared it as little better than a "camp site" when clinical services were withdrawn.

Winnunga chief executive offficer Julie Tongs said the health service would support the use of the healing farm for Indigenous people on conditional bail or prison remandees, but each person's case would have to be assessed based on their individual needs.

"There are risks that would need to be managed but it's a good idea if it gets people out of prison and into a health program which suits their particular needs," Ms Tongs said.

"The farm is quite isolated so it wouldn't suit everyone, but some people would benefit being from being out in the bush and away from the city."

She said that there would need to be clinical support on-site at the farm along with upgraded communications, but it was an idea "with merit" because the ACT needed to address its appalling record of Indigenous incarceration rates, recently rated the worst in Australia.

"What we are seeing is that many Aboriginal people going in and out of the prison system have health issues; they are self-medicating and they need proper support," she said.

A total of 19 people have fully completed the 12- to 15-week day course offered by the farm since it started operating in November 2017.

The future of the farm is currently under review by the Burangana Consulting Group. The review began in October last year and will run for a 12-month period.

ACT Health describes the role of the farm as "[addressing] the underlying social issues that lead to substance abuse and treatment relapses".