The gas leak in Kamo has been stemmed by Fire Service.

Police say the leak was caused when a bus hit a LPG substation at a Z service station this morning at about 7.30am.

A 600-metre exclusion zone had been created and homes and parts of Kamo High School were evacuated because of the risk of explosion.

Those evacuated have now been told they can return to most of the affected area.

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Police cordons are being removed with the exception of the area bounded by Kamo Road, Wakelin St and Wilkinson Ave, which is still being checked by the Fire Service to make sure there is no residual gas.