UPDATE 6pm:
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State Control Centre spokesperson Lachlan Quick has confirmed a grass fire that tore through land near Smeaton is now under control.
Thick layers of smoke are drifting north towards Campelltown and CFA crews will remain on scene late into the evening.
The fire took about three hours to contain and burnt through 250 hectares after crews were first out called out to the scene about 3pm.
UPDATE 5.15pm: State Control Centre spokesperson Lachlan Quick said firefighters were hitting the blaze hard, with about 30 tankers and seven aircraft called in to tackle the fire.
The blaze has burnt about 80 hectares so far and is moving in a northwesterly direction.
About 12 properties are in the nearby Campbelltown area, but none are under immediate threat.
No structures have been impacted by the fire, but the Creswick-Newstead Road remains closed, with thick smoke blanketing the area.
Temperatures in central Victoria have ranged from 42 degrees in Bendigo in the north, to 29 degrees in Ballarat in the south.
An emergency warning remains in place for residents in the area to take shelter indoors immediately.
EARLIER: CFA crews are battling an out of control grass fire in Smeaton, north of Ballarat.
Firefighters were called out to the scene following reports of the blaze along a bend of the Creswick-Newstead Road about 3pm.
Police are blocking off the area to traffic as 15 CFA trucks and five aircraft, including an orange Erickson air crane, tackle the fire, which has been burning out of control for at least an hour.
It’s believed the fire is travelling in a northwesterly direction, blanketing the area with thick layers of smoke.
“They’ve been hitting it hard trying to contain it,” a CFA spokesman said.
An emergency warning is being issued for Campbelltown, Cotswold, Glengower, Moolort, Smeaton, Strathlea, Ullina.
“You are in danger, act now to protect yourself. It is too late to leave. The safest option is to take shelter indoors immediately,” authorities have warned.
What you should do:
You should move indoors.
Close all exterior doors, windows and vents and turn off cooling systems.
Shelter in a room that has a door and or a window to the outside - It is critical to see what is happening with the fire.
If you cannot get indoors, last resort options include:
A large open area like a ploughed paddock, football oval or sporting reserve.
A large body of water like a dam, lake, river, the ocean or inground pool.
Try to protect yourself from the fire's heat.
If you are travelling:
If you are travelling, do not enter the area, U-turn to safety.
If you are currently driving slow down and turn on your headlights; smoke will make it difficult to see.
More to come.