Waterfall Way remains closed between Armidale and Ebor, and homes have been threatened, due to a bushfire burning at Wollomombi.
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The fire is burning along Waterfall Way in the vicinity of Sandy Creek. The Rural Fire Service said firefighters are on scene and are working to contain the fire.
On Friday afternoon the RFS had warned residents in the area to enact their bushfire survival plan.
The RFS had downgraded the emergency fire warning to "watch and act" status.
Crews will remain on scene over night to contain the fire. Firefighters have been assisted by water bombing aircraft to stop the spread of the fire.
Two Large Air Tankers 'Marie Bashir' and for its first deployment, 'Boomer'. have been used to fight the blaze.
Residents in the area are advised to monitor the situation and make sure they have a bush fire survival plan.
With the highway closed, diversions are in place via Guyra Road and the New England Highway.
