The bushfire at Dereel, in Victoria's west, started just after 6pm, prompting an emergency 'leave now' warning for residents living nearby.
While authorities were earlier probing if it was suspicious, police are now investigating if it was caused by a faulty electric fence.
More than 170 properties were threatened by the blaze, which burned 110 hectares and destroyed at least one building.
Emergency Management Commissioner Rick Nugent said authorities were still working out what exactly started the blaze.
"The cause of the Dereel fire is actually under investigation. We know that there was no dry lightning around at the time," he told media earlier.
"We don't believe there (were) any tractors or other machinery working in that area at the time."
Premier Jacinta Allan said at least one building was believed to be lost, but couldn't confirm the extent of the property damage.
The fire has since been deemed under control.
Large fire contained despite tough conditions
Hot, dry and windy conditions created catastrophic conditions yesterday, with firefighters working throughout the night to contain the Bayindeen-Rocky Road fire.
The fire burning near Beaufort broke out on February 22, has burned more than 22,000 hectares.
At least six homes have been destroyed.
Commissioner Nugent said yesterday presented as a "very big challenge" for authorities.
He thanked the hard work of everyone involved to contain the fire.
"We saw some of the worst fire conditions in many years," Commissioner Nugent said.
"We were concerned with the Bayindeen fire and lots of work was done by agencies, (they) worked as hard as they could to contain the fire and they are to be thanked for their work."
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2024-02-29 04:11:49Z
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