AAP is reporting that two homes have been destroyed in the blaze which has burnt out 200 hectares after starting in an industrial area of town.

Adding pressure to the situation is the extreme hot weather which is engulfing SA, NSW, Victoria and Tasmania, with temperature in the high 30s predicted until Thursday.

The fire warnings come on the 70th anniversary of Victoria's worst bushfires, which killed 71 people on Black Friday of January 1939.

There are currently fire restrictions in place for all of Victoria, and most of NSW and South Australia.

According to the NSW Rural Fire Service, the highest risk areas in NSW are the Riverina and South Western zones, while nearly all of the rest of the state, barring the New England, is considered to be a high to very high fire risk.

While some small fires are burning in NSW, there is only one blaze in Sydney which is threatening property.

In Victoria a total fire ban is in place for all areas except the eastern zone, where fires can be lit but under restrictions.

In South Australia there are currently five fires burning and 14 incidents under observation.

However, the Country Fire Service the fire at Proper Bay on the Lower Eyre Peninsula near Bluefin Road and Proper Bay Road is still posing a threat to public safety.

The CFS has declared total fire ban for the following areas: West Coast, Eastern Eyre Peninsula, Lower Eyre Peninsula, Flinders, Mid North, Yorke Peninsula, Mount Lofty Ranges, Kangaroo Island, Murraylands, Riverland, Upper South East, and Lower South East.