UPDATE 2.20pm:
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Police said a 31-year-old Daylesford woman was arrested at the scene of the East Street unit fire.
She has been charged with arson and assaulting police - and has been bailed to appear in the Ballarat Magistrate's Court on May 15.
UPDATED 11am:
The Arson Squad is on its way to Daylesford to comb through the burnt-out Daylesford unit.
Ballarat CIU is investigating.
The East Street home was a three-bedroom brick unit.
EARLIER:
Police are investigating the cause of "multiple fires" in a home in Daylesford on Thursday - including a smouldering pile of clothes.
The CFA said the incident was initially reported as a structure fire at 3.41pm on Thursday.
Firefighters entered the East Street home using breathing gear, finding several fires inside - and no occupants.
The CFA said the incident was under control by 4pm and ventilated the property.
It was declared safe at 4.30pm and the scene was handed over to police officers.
A Daylesford pumper and a Hepburn tanker attended, as well as the power and gas companies.
MORE TO COME