Crews were called to the incident on Main Road, Golden Point around 12.40am with the fire burning within an old mine area. The fire is now bordered by Tinworth Avenue, Main Rd and Elsworth St.
Due to the terrain, which includes concealed open mine shafts, the fire was difficult to access. While the fire is now contained, it is expected to burn for some time.
It is estimated the fire has burnt through around 10 hectares.
Smoke may be visible in and around the area and some roads are affected.
The cause of the fire is not yet known and will be investigated.
Ten fire trucks and four support vehicles attended the fire from Ballarat City, Ballarat, Buninyong, Glen Park, Leonards Hill, Miners Rest, Mt Warrenheip, Napoleons, Sebastopol and Wendouree.