Four helicopters with monsoon buckets are dropping thousands of litres of water on the Pegasus Bay fire this morning, while seven ground crews are working on the flanks. Two fixed wing waterbombing aircraft are on their way to join the air attack.

Incident Controller Dave Berry said they were aiming to make as much progress as possible to knock the fire back before winds increased again later this morning.

Last night over 70 firefighters focused on protecting the Woodend Beach Holiday Park, where all 130 residents were evacuated as a precaution, and on creating a firebreak to stop the fire reaching Pines Beach. No homes or other buildings are known to have been damaged by the fire.

The evacuees and other locals will hear an update from Mr Berry at a community meeting in Woodend this morning. No decisions have been made about when evacuees will be allowed to return home.

Fire and Emergency have established a fire investigation team with Police and a scene guard is at the site where the fire was first reported. Mr Berry said anyone with information about how the fire started should contact Police on 105.

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