Melbourne factory fire: 30 million litres of toxic water pumped from creek as smoke rises

Millions of litres of polluted water is being pumped out of a Tottenham Creek, contaminated by yesterday's warehouse chemical fire.

Stony Creek - which runs right beside Merriwa Kindergarten - had machinery funnelling 30 million litres of water into storm drains where it will be treated, instead of flowing straight into the Yarra.

Firefighters have declared the warehouse blaze under control but are still battling to reach the centre of the 14,000-square-metre block, where it's believed the fire began.

The inferno was fuelled by the chemicals OxyAcetylene, used in welding equipment, and Acetone, which is found in nail polish remover - and that smell drifted swiftly over the city's west.

Plumes of thick black smoke blanketed Melbourne's west, stretching for kilometres after chemicals ignited inside the warehouse early yesterday morning. 

By today, the scene was a far cry from the rolling thunder of explosions residents and businesses nearby saw yesterday.

As of 7am however, residents reported the lifting of smoke for the first time since the blaze sparked.

A Watch and Act alert also remains in place for 11 surrounding suburbs. 

"We expect there will be smoke in the area for some time and crews will remain on scene," a statement from the MFB said.

A watch and act advice message remains in place and the community should continue to monitor conditions."

A combination of chemicals and scrap metal is known to have been burning inside the factory. 

The EPA says air quality is 'good', but the advice is still to limit exposure to any smoke in the area. 

Yesterday many locals reported headaches and nausea after being exposed to the thick plumes.

Children have been allowed to return to the more than 50 schools and early-learning centres which were closed yesterday.

But local businesses remain severely affected, with many workers simply unable to pass the road blocks.

Meanwhile, many gathered at the Footscray Town Hall last night for a community meeting where they voiced their concerns about the 'confusing and conflicting' messages given by authorities. 

“You've just got to look at that black cloud. We want to know more than is it good we want to see the readings and understand how long it's going to be like that,” former Greens MP Colleen Hartland said.

Investigators have spoken to the owner of the warehouse and its new tenant. 

They say it's too early to determine whether malpractice is to blame for igniting the chemicals inside. 

Heavy machinery is being used to clear the rubble, but it could be some days until an exact cause is established.