A statement by the New South Wales Rural Fire Service says the fire is burning in the Edgeworth, Barnsley and Argenton areas with properties under threat.
The fire has burnt more than 200 hectares and is out of control, AAP reports.
The statement says the fire is burning in very high fire danger conditions and threatening properties in Ridley, Aroona, Penrose and Lutana streets and Lyons Close, but no areas were being evacuated.
More than 80 firefighters are working to get the fire under control, hampered by strong southerly winds which were causing spot fires in those areas.
Residents were warned to check their bushfire survival plan, stay alert and follow the advice of firefighters.