
Tom Sutherland, who lives on a Goodwood Rd lifestyle block near Palmerston, with his wife and three sons, this afternoon said they were watching to see whether the large fire in pine trees on the slopes of Puketapu come too close for comfort.
"The fire is going past a big block of blue gums just opposite our place. If they go alight then it could jump the road to us," Mr Sutherland said about 5pm.
He said three helicopters were fighting the fire in windy conditions, filling their buckets from a pond just over the hill from the family home.
The Otago Daily Times understands Palmerston residents believe a farm generator sparked the fire, which was reported about 2.35pm.
In an update about 7.45pm, fire officials said ground crews were still working alongside eight trucks and four helicopters.

"With the wind dying down, crews can start getting the fire contained."
They said the blaze burnt 25 hectares of pine, but no structures were at risk
"The helicopters will cease operations at sunset, and one crew will remain overnight. More crews will return in the morning to continue mopping up."
They said smoke could blow towards Palmerston overnight, and urged people in the vicinity to keep doors and windows closed and to stay inside if possible.
Fire and Emergency New Zealand (Fenz) earlier said a house had been protected from the blaze.

The blaze is one of several being tackled by crews amid hot and windy conditions in the South today.
Highway closure
A Southland highway will stay closed overnight after crews battled a forestry block fire nearby today.
A section of State Highway 96 near Mataura was closed earlier this afternoon because of the fire, NZ Transport Agency Waka Kotahi said
The closure affects SH96 between the intersections of SH1 and Waimumu Road.
This evening Fenz said the fire was about 200 x 300m in size, but crews had it contained.
Three trucks remained on site alongside a digger, while two helicopters involved earlier had ceased operations.
Fenz said power had been reinstated in the area, but the highway would remain closed overnight.
"A small crew will be monitoring the fire overnight and more firefighters will return in the morning for mop-up."
Fenz earlier said they were responding to a spate of fires in Otago and Southland, amid strong winds and high temperatures across the regions.
Southland fire officials said crews were battling four other vegetation fires, at Dacre-Morton Mains, Makarewa, Greenhills and Otahuti.
They were alerted to the blaze, about 200m north off Johnston Rd, 1km from Balclutha, about 1pm.
Helicopters and seven fire appliances were at the scene, a Fenz spokesman said, the choppers collecting water from the nearby river to dump on the blaze.
A witness said stifling warmth and fierce winds were fanning flames at the rural property.
In an update shortly before 2pm Fenz said the fire was about 150m x 50m in size at 2pm, but had spread since then.

A huge cloud of smoke blown south by the wind occasionally obscured the area.
Two pumps, and one support appliance sped from Balclutha volunteer fire brigade about 1pm. Crews from Clutha Valley and Dunedin stations also attended.
This evening, Fenz said the fire was under control and two crews were still at the scene, dampening down hotspots.
In Papakaio, in the Waitaki District this afternoon, a paddock fire was caused by a trampoline getting blown into powerlines.
"We were alerted at around 2.40pm this afternoon and four crews are fighting the fire."
- additional reporting Allied Media












