UPDATED, 5.17pm: A grass fire at Murphys Creek, 7km west of Tarnagulla, is now under control.
Emergency services contained the fire along Hancock's Road and no property had been damaged, a CFA spokesperson said.
A 'threat is reduced' alert replaced the earlier 'shelter indoors now' warning.
People located within Murphys Creek are now able to resume normal activities, though smoke may still be visible.
EARLIER: A 'shelter indoors now' warning has been issued as fires rage at Murphys Creek, seven kilometres west of Tarnagulla.
"You are in danger, act now to protect yourself. It is too late to leave," was the information given to residents in the immediate warning area on VicEmergency.
"The safest option is to take shelter indoors immediately."
The fire was around 100 hectares in size and moving in a northerly direction in a canola crop, a CFA spokesperson said.
A total of 25 tankers from CFA and Forest Fire Management Victoria were battling the blaze. Emergency services air craft had also been dispatched.
What you should do if you are in the danger zone:
Quickly move indoors:
If you cannot get indoors, last resort options include:
In the car:
If caught in fire:
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