At least two homes are believed to have been lost to a fire burning in central Victoria, with fears dozens more could be hit.
Residents of the town of Snake Valley, about 30km from Ballarat, say two homes have been destroyed.
"We have lost a couple of homes," a man, who did not want to be named, told AAP from the Snake Valley Hotel.
"I can see it from the hotel with the smoke four to five kilometres away."
The Nine Network showed footage of a home near Chepstowe being destroyed by fire.
A caller to Fairfax Radio, Craig, said his daughter's in-laws' house near Snake Valley had burnt to the ground.
"The wind is going that hard, there just probably no time to even do anything," he said.
A Country Fire Authority spokeswoman said two homes had been impacted by fire in the Chepstowe area due to the fast-moving grassfire but authorities were still trying to determine the extent of the damage.
The fire is about 225 hectares in size and is out of control, the CFA said.
An emergency warning was issued on Tuesday afternoon for the Chepstowe district, as the fire burnt through the area around the Beaufort-Carngham and Station Lane intersection.
A watch and act alert was in place for other areas around Chepstowe as the fire moved in a north-easterly direction towards the town of Carngham, home to about 410 people.
That alert applied to Chepstowe, Poverty Point, Snake Valley, Mortchup, Carngham, Burrumbeet and Brewster.
Callers to Fairfax Radio said as many as 30 homes in Station Lane, Chepstowe, may have been impacted by the fire.
"I've heard from other people around the area that their houses have already been burnt down," caller Dale, who lives nearby, told the radio station.
"It's pretty hectic out that way, no doubt the people would be very distressed."
Another caller said there were a few farmhouses dotted around the area where the fire is in Snake Valley, which has about 590 residents.
The town of Chepstowe itself is home to about 150 people, according to the 2011 Census.