A watch and act warning for towns around the Carlisle River fire has been reduced to an Advice message.
Locals in areas such as Forest, Barwon Downs and Yeodene are being told it is safe to return if they evacuated.
The emergency warning area around the blaze has also been reduced, but locals in that area are being told to take shelter now.
The bushfire is travelling in a north-easterly direction towards Gellibrand and Karwarren, with crews working tirelessly to contain the fire and bring it under control.
A community information message is now in place for towns around the perimeter of the bushfire, including Lorne, Birregurra and Eastern View.
Authorities say smoke may be visible from nearby communities and roads.
Anyone needing to find out more information are being encouraged to check the Vic Emergency website or download the Vic Emergency app.
Meantime, Barwon Water has warned Gellibrand’s water supply could run out, with the fire impacting the town’s water treatment plant.
The water authority says it is not safe for crews to go into the fire zone to refill water tanks.
It says it cannot guarantee safety or water supply, and tap water is not safe to drink.
