The large scrub fire on hills overlooking Dunedin on Monday is being treated as suspicious.
Twenty firefighters are mopping up and searching out hot spots on Tuesday, with about 100 hectares burnt on Flagstaff Hill.
Occupants of four properties evacuated on Monday are back home, but remain on standby, with westerly winds expected on Tuesday.
Fire and Emergency New Zealand says the fire is being treated as suspicious, because of the remote location it started in.
Otago principal rural fire officer Graeme Still told Newshub an investigator would be at the site on Tuesday.
Crews started to bring the fire under control on Monday evening, using eight helicopters. Rural firefighters also tackled it from the ground, working through the night.
The fire was visible from Dunedin's central business district, as thick smoke blanketed the city.
Newshub.
