Police said in a statement emergency services were at the scene of a "large" scrub fire in the Aronui Rd area in Alexandra.
Senior Sergeant Ian Kerrisk said the fire, which was now under control, was in a steep, rocky gully.
Fire staff will remain on site dampening down hot spots, police said.
"Residents are in the area are reminded that there is still some risk of fire due to the dry conditions, and that a restricted fire seasons remains in place."
Neighbouring land owner Annette McLean who was watching the fire, said she was not surprised by the fire because the area was "tinder dry".
"It only takes a wee breeze and hot, dry conditions and woopsie daisy," she said.
She said the land where the fire started was mostly council owned.
Neighbouring land owner Greg Clearwater said he was concerned "especially the fact that (the fire) is near a walking track."
Kevin McClean, who lives just below where the fire started, said the area was mostly scrub, rock and some pine trees.
"My wife has been working making it fireproof, getting stuff that other people that have been dumped, but you can't save everything," Mr McClean said.
Police asked that members of the public "please avoid the area while emergency services attend to it".
"At this stage we urge people in area to stay inside, to keep them away from possible smoke inhalation."
They also asked that residents in the Aronui Rd and Kamaka Cres area stay inside their homes at this stage, and close their windows and doors, due to heavy smoke in the area.
Both police and ambulance were at the scene as a precaution.
