Sparks from a fire in a conservation area next to Albert Town may have been what set fire to a house in a street about 150m away.
The Wanaka Fire Brigade and appliances from other volunteer brigades were called about 5pm yesterday to a fire raging in kanuka in the Department of Conservation's Hikuwai conservation area in Gunn Rd.
About the same time, there was a call to a small rental house downwind of the fire, in Bernard Rd.
Local residents said the fire in the conservation area was fanned by quite strong winds and they saw glowing branches of kanuka flying over their houses.
They suspected one of those set fire to the hedge outside the Bernard Rd house.
Wanaka Chief Fire Officer Ian Galloway agreed the ''spot fire'' was likely to have originated from the conservation area.
An occupant of the damaged house, Jordan Macgregor (32), who was at work at the time, said the hedge fire set off lpg tanks which spread the fire to one side of the house.
''The neighbours rallied and got the water on it, but it was too intense.''
Mr Macgregor said his brother, Alistair (28), was in the house but escaped uninjured with their two dogs.
There was considerable smoke and water damage. The brothers have found alternative accommodation.
As the flames from the conservation area threatened houses next door and on the opposite side of Gunn Rd, residents fought the fire with garden hoses, buckets of water and even a chilly bin.
Jacqui Lewis and Simon Maddison feared the flames would take hold in a large tree outside their house and then spread.
However, the wind swept the flames on to the next-door-neighbour's wooden fence.
Residents, and a passing mountain biker, managed to stop it spreading further, into the garden and towards the house.
Real estate agent Jarrod Fraser said he was on his way home when he spotted the fire in his rear view mirror. He stopped, called the brigade and then helped tackle the flames.
Mr Galloway commended those who helped, although he advised members of the public to beware of getting too involved with the main fire front during similar situations.
It was lucky the wind dropped as the fire progressed, he said.
The cause is being investigated by a fire safety officer from Queenstown.
Mr Galloway said conditions were ''tinder dry''.
