A penal colony or exile colony is a settlement used to exile prisoners and separate them from the general population by placing them in a remote location, often an island or distant colonial territory. Although the term can be used to refer to a correctional facility located in a remote location, it is more commonly used to refer to communities of prisoners overseen by wardens or governors having absolute authority.

Historically penal colonies have often been used for penal labour in an economically underdeveloped part of a state's (usually colonial) territories, and on a far larger scale than a prison farm.

The First Fleet was a fleet of 11 ships that brought the first European and African settlers to Australia. It was made up of two Royal Navy vessels, three store ships and six convict transports. On 13 May 1787 the fleet under the command of Captain Arthur Phillip, with over 1400 people (convicts, marines, sailors, civil officers and free settlers), left from Portsmouth, England and took a journey of over 24,000 kilometres (15,000 mi) and over 250 days to eventually arrive in Botany Bay, New South Wales, where a penal colony would become the first European settlement in Australia.