A large pile of rubbish caught fire just before 2pm and was spreading quickly before fire crews arrived.
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Firefighters were called to the depot to contain the fire.
Ballarat City fire station senior station officer David Mounier said the pile of general waste, which had been dumped on a neighbouring block, began to spread.
Crews from Ballarat City and Wendouree attended and took 15 minutes to contain the fire and 40 minutes to fully extinguish it.
“(The fire) started to spread to the neighbouring block and crews stopped it from spreading,” Mr Mounier said.
“Even though we are quite near the end of the fire season, it is still quite dry and days are warm enough to allow fire to burn.”
The cause of the fire is yet-to-be determined.