Wreck Bay is closed with access only to residents and emergency service personnel as a fire, believed to have been deliberately lit in bushland burns south of the South Coast village.
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Rural Fire Service crews were called to bushland off Boorala Road near Summercloud Bay around 5am Thursday, where multiple fires had broken out.
RFS spokesperson James Morris said a number of crews were at the location trying to contain the blaze which so far had burnt out about five hectares of bushland.
"Crews are conducting back burning operations and at this stage there is no direct threat to property, however if winds pick up there may be some properties in the village, south of Jervis Bay, which could be threatened," he said.
"At this stage Wreck Bay Road and village is closed, with access only allowed to residents and emergency services.
"The RFS continues to monitor the fire and will advise residents in Wreck Bay if there is any changes."
He said forecasted westerly winds of up to to 45km/hour could have the potential to increase fires in the area.
At this stage the cause of the fire is being treated as suspicious.
"Australian Federal Police and fire investigators will attend the scene to determine the cause."
It is the second time this week crews have been called to a suspicious fire in the area.
