A large waste fire burning in Pialligo is expected to burn for days, an ACT Emergency Services Agency spokesman said.
Smoke billowed up into Canberra's red dawn on Friday as the fire burned into its second day.
Firefighters said containment lines had been maintained overnight and smoke from the fire had stayed "localised".
"Regular air quality testing has been conducted by firefighters at the scene overnight with no harmful readings recorded," a spokesman said.
The large fire has added to Canberra's week of blazes, with firefighters working to bring it under control.
Eleven units responded to the fire about 2pm on Thursday near the corner of Pialligo Avenue and Glenora Drive, the spokesman said.
The fire, which was reported to be about 5000 square metres in size, is concentrated in a large pile of rubbish and pallets.
Shortly before 5pm, the ESA spokesperson said firefighters were working with onsite personnel to bring the fire under control and nearby residents were told there was no immediate danger.
However residents were warned they should stay up-to-date in case the situation changes.
The fire was contained about 8pm but the spokesman said it was expected to burn for at least a couple of days, due to the types of material that are alight.
"They need to keep pulling the pile apart and when they do that, it continues to burn," he said.
"But it's not causing any threat to anyone, it's all localised in the immediate area and is dissipating pretty quickly above the site."
Contractors with heavy machinery broke the piles down into several smaller piles on Friday morning to enable firefighters to wet down the flames.
Several smoke stacks were created each time debris was moved but the spokesman said they quickly dissipated.
Smoke was forecast to spread south-west after midday due to north westerly winds up to 25 kilometres per hour.
The blaze follows a number of deliberately lit fires in the capital in recent days.
Earlier on Thursday, police reported a man seen on Black Mountain after a series of suspicious fires on Wednesday was assisting with investigations.
Black Mountain Tower was evacuated as firefighters battled four grass fires at the base of the mountain between 4pm and 5pm.
One fire spread to 1200 metres in size and closed one lane of Parkes Way before firefighters were able to bring it under control.
Police said the man was located in the Black Mountain area a short time later.
Several fires across Canberra on Tuesday were also believed to be deliberately lit, at Tuggeranong and Kaleen.
A number of hazard reduction burns also took place this week.
A burn at Tharwa will take place on Friday however the burn scheduled for Coombs will not take place.
ACT Policing have warned the public to remain vigilant and to report any suspicious activity to Crime Stoppers on 1800 333 000, or via act.crimestoppers.com.au.