WALLAN residents are sitting in the pub, waiting, as a fast-moving grassfire burns in the town of 12,000 people north of Melbourne.
The CFA issued an emergency warning about 1.45pm (AEDT), advising a small blaze had broken out at Taylors Lane.
The fire was brought under control just after 3pm, a State Control Centre spokeswoman said.
The emergency warning was downgraded to a watch and act alert about 3.30pm.
The CFA alert said the grassfire was about five hectares large and travelling north.
"The fire has already impacted Rowes Lane, Old Sydney Road, and is now being controlled," the alert said.
It said smoke may be visible from the Hume Highway and Northern Highway.
Wallan is about 60km north of Melbourne.
Karen Buckley who works at the local pub, Hogans Hotel, said people had gathered there to wait.
"I can see the smoke from the window here," she told AAP.
"We have a couple of local residents actually here with their little dogs, just waiting it out.
"Everyone is just sitting back and just watching."
Ms Buckley said she could see several planes and two or three helicopters dumping water.
Her property is in an estate off Taylors Lane, where her 19-year-old daughter is looking after the family's show dogs and cats.
"She is just worried more about our animals," Ms Buckley said.
A State Control Centre spokesman said two helicopters and nine trucks were on scene.
"Residential properties could be impacted, but as far as I've heard so far they have not been," he told AAP.
Ms Buckley said the smoke had started to dissipate.
"It's not as heavy as what it was, so we're hoping that containment is progressing," she said.
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