Fire fighters and helicopters with monsoon buckets are battling to put a scrub fire that started in Closeburn, near Queenstown, early this morning.
More than 100 residents have been evacuated, some from homes worth over $1 million.
About 50 homes are threatened, while helpless residents temporarily moved into the Queenstown events centre.
Senior Sergeant John Fookes says police will be investigating the cause of the blaze today.
He says there have some initial reports of fireworks and they would like to speak to anyone with information.
Photos
If you've caught some of the action on digital camera this morning, please ! We'll post the photos for all to see!