Fire and Emergency NZ incident controller Dave Berry says the situation is safe enough for residents to return home as of 5pm today through a managed re-occupation.
Crews will be controlling and monitoring the fire throughout the night, he said.
If anyone has any concerns, call 111.
"Helicopters and fixed-wing aircraft continue to drop water on the fire to knock it down with ground crews tackling spot fires and hotspots and firming up the containment lines on the flanks of the fire," Berry said.
Te Mana Ora - Community and Public Health is advising people affected by smoke from the fire to close windows and doors, stay inside if it’s safe to do so and avoid or reduce outdoor exercise.
Anyone experiencing health issues from the Woodend fire should phone their general practice team in the first instance.
Police speak to two youths
Police investigating the cause of the fire at Pegasus Bay have spoken to two young people in relation to the incident.
"We are pleased to have been able to quickly identify those allegedly involved and we hope this brings some reassurance to the community.
"It has been established the fire caught following a firework being let off.
"We encourage anyone intending to light fireworks this season to ensure you do so safely.
"This includes not lighting them in windy or dry conditions, or around anything that might catch fire, such as dry grass or leaves.
"Police would like to thank those evacuated last night for their compliance and patience," Cooper said.
