A Fire and Emergency New Zealand spokeswoman said firefighters were called to Mopanui Rd, north of Dunedin near Mount Cargill, at 6.23pm.
Fire crews were having trouble accessing the fire and needed 4WD vehicles, she said.
A reporter at the scene could see a helicopter arrive to help fight the blaze as smoke billowed from what appeared to be an area of forestry.
A Fenz spokeswoman said power lines were also down near the fire.
A Doctor's Point resident reported power was out at their property.
PowerNet has listed an unplanned outage in Waitati caused by overhead line damage.