A Fire and Emergency New Zealand spokesman said they had been called to a vegetation fire on Mt Cargill Rd, in the vicinity of Blueskin Rd, just before noon.
Eight crews from Waitati, Palmerston and Waikouaiti stations had been called to the scene, and a helicopter was assisting.
There was information to suggest a property was threatened by the fire and crews were working to protect it the spokesman said.
About 2.45pm, the Fenz spokesman said the blaze was under control and crews were working to dampen down the surrounding area.
An Otago Daily Times photographer earlier said the fire was burning at the bottom of a gully and did not appear to be immediately threatening any nearby properties.
Smoke from a separate blaze, believed to be a controlled burn, was visible from central Dunedin.
