An emergency warning alert was in place for the fire on Friday evening, before the blaze was downgraded about 8.30pm to watch and act.

People in the Batlow area and north to Wondalga to the west of Blowering Dam have been told to leave and that the town is not defendable.

The Dunns Road blaze is burning south of Snowy Mountains Highway in the Ellerslie Range, near Kunama and Laurel Hill towards Talbingo. It has already burned more than 131,000 hectares. The fire service was on Thursday concerned that prevailing winds could fan the fire east towards Namadgi National Park and Canberra. There is no immediate threat to Canberra from any of the fires burning in NSW.

The Rural Fire Service says the fire poses a serious threat to life and dangerous fire conditions are expected on Saturday.

The Kosciuszko National Park has been a tourist leave zone and holidaymakers in the area of Jindabyne, Adaminaby, Berridale, Delegate, Providence Portal, Anglers Reach and Old Adaminaby have been told to leave on Friday.

A similar order has been issued for people in towns west of Kosciuszko National Park, including Tooma and Greg Greg and Khancoban.

Jindabyne Holiday Park had cleared out when The Canberra Times called at 1.30pm. Receptionist Joelene Shorten said more than 100 people had been evacuated by Friday morning.

"We had a lot of really understanding people," she said. "We had group of 20 yesterday who checked out early - they just wanted to get home."

A fire was deliberately lit in Jindabyne on Friday morning as the region faces a severe fire risk.

Police are appealing for information after a passing motorist saw a fire in bush land on Cobbin Crescent on the eastern side of Kosciuszko Road about 6.30am on Friday.

The motorist alerted emergency services as he tried to put the fire out, and Fire and Rescue NSW extinguished the fire before it spread.

In a separate case, a man has been charged after allegedly lighting fires on his property near Jindabyne without a permit on Thursday evening.

NSW police said the fire was extinguished with no injuries, and an 84-year-old man would be charged.

Police have also arrested a man who allegedly stole from a home in the town of Batlow that had been evacuated.

About 3.30pm on Thursday the man broke into the property on Old Tumbarumba Road, and allegedly stole a Ford Falcon sedan which was then seen driving erratically.

Police started a pursuit but quickly pulled back for safety reasons, but soon after found the car had crashed into a tree.

A 19-year-old man is now in a stable condition at Wagga Wagga Base Hospital under police guard.

"During a search of the vehicle, officers located a backpack containing several items believed to be stolen, including jewellery, documentation, and ammunition. The bag was seized to undergo forensic examination," the NSW Police statement said.

The incidents come as residents across the Snowy Monaro region have been given dire warnings ahead of Saturday's horror conditions, with many towns under threat from multiple fires.

The Green Valley fire that crosses the Victoria-NSW border is predicted to spread northwards on Saturday, and the Dunns Road fire is threatening towns including Batlow and Adaminaby.