Helicopters were called in to tackle the blaze, as 80kmh winds fanned the flames in tinder dry conditions on the edge of town.
Roxburgh chief fire officer Dave Rooney said crews were working at daybreak to put out any flare-ups.
"We've now had the helicopters back in the air, going around the whole perimeter, dealing with the hot spots."
One helicopter would remain on stand-by in the area for the rest of the day, he said.
MetService forecaster Paul Mallinson said Central Otago had temperatures in the mid-20s and humidity of 8 to 15 per cent yesterday.
The National Rural Fire Authority issued an "extreme" fire danger level for Central Otago yesterday.
The cause of the fire was unknown.