Bushfire threat downgraded after fire controlled in Victoria's west

The bushfire threat for a small Victorian locality has been degraded after crews gained control of a raging fire near Bendigo.

Residents were earlier told to seek shelter indoors, after the fast-moving bushfire burned out of control at Murphys Creek.

An emergency warning was issued at 4.25pm for residents, who were told, "the safest option is to take shelter indoors immediately".

Authorities said the grassfire was moving in a north-easterly direction close to the Wimmera Highway.

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Residents were warned they were in danger and that it was too late to leave.

Around 46 residents live in the rural locality.

The fire was about 100 hectares in size.