UPDATE 5.55pm: The fast moving grass fire to the north of Clunes has been controlled by CFA crews.
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The Watch and Act message which has been in place for over an hour has now been downgraded to an Advice warning, meaning it is safe for residents to return to their properties, but to be aware of smoke in the air.
At its peak, 17 vehicles battled the blaze which began around 4.30pm near Albert Street.
EARLIER: The Watch and Act message has been extended through to the north west of Clunes as far as Foleys Road as 17 tankers battle an out-of-control grass fire.
An Advice warning has also been issued for areas to the north-east of the town as far north as Merrin Swamp and as far east as Lord Clyde Road in the east.
The fire remains travelling in a northerly direction towards Birch Creek.
ORIGINAL STORY: A Watch and Act warning has been issued for the Clunes community for a grassfire which has started in Albert Street.
The CFA has issued a warning for the fire, travelling in a northerly direction from Albert Street towards the Birch Creek.
The CFA message says leaving now is the best option.
Ten vehicles are currently on the scene.
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