Midway through the first half Ross Hannah had a chance to put Barrow ahead, but his shot was blocked by Michael Ihiekwe.
Andy Cook's excellent volley from 25 yards out, his 19th league goal of the season for Rovers, broke the deadlock and he almost doubled the advantage just before the break.
Barrow levelled in the 63rd minute when Moussa Diarra attacked the ball from a free-kick that was spilled for Inoh Effiong to tap in moments after coming on.
Six minutes later Akil Wright's interception fed Williams, who stunningly found the top corner from 20 yards.
Match report supplied by the Press Association
Match ends, Barrow 2, Tranmere Rovers 1.
Second Half ends, Barrow 2, Tranmere Rovers 1.
Substitution, Tranmere Rovers. Cole Stockton replaces Jay Harris.
Substitution, Tranmere Rovers. Connor Jennings replaces Adam Mekki.
Jay Harris (Tranmere Rovers) is shown the yellow card.
Substitution, Tranmere Rovers. Andy Mangan replaces Ritchie Sutton.
Goal!  Barrow 2, Tranmere Rovers 1. Jordan Williams (Barrow).
Goal!  Barrow 1, Tranmere Rovers 1. Inih Effiong (Barrow).
Substitution, Barrow. Inih Effiong replaces Ross Hannah.
Substitution, Barrow. Akil Wright replaces Dan Rowe.
Second Half begins Barrow 0, Tranmere Rovers 1.
First Half ends, Barrow 0, Tranmere Rovers 1.
Goal!  Barrow 0, Tranmere Rovers 1. Andy Cook (Tranmere Rovers).
First Half begins.
Lineups are announced and players are warming up.
Jordan Williams' screamer gave Barrow victory over high-flying Tranmere at Holker Street and moved the hosts two points off the National League play-off places.