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The blaze was extinguished only metres from a building housing the Fire Service's area office.
At its height, the fire covered an area about 70m by 70m on a steep bank overlooking the Shotover sewage treatment ponds.
Fire appliances from Frankton and Queenstown responded about 3.45pm, quickly bringing the fire under control with water and foam.
The fire came within about 10m of a building housing the fire service's Central-North Otago area office.
Frankton Fire Station Officer Andrew Doole said the cause of the fire was unknown.