Fire crews are fighting a blaze spanning 100 metres at Lake Hayes, near Queenstown, which has seen several properties evacuated.
Fire and Emergency staff were called to the scene about 11am today and have called in crews from Queenstown, Arrowtown and Frankton for assistance, shift manager Tim Reynolds said.
Three helicopters have also been dispatched.
"Police have assisted with some evacuations of properties that were threatened - there's been no reports of injuries or damage at this stage," he said.
Fire and Emergency NZ was unable to confirm the number of properties evacuated.
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