The owner of Weimar Boarding Kennels, which is near the top of Rudd Rd, was in the process of evacuating just before 4pm.
The fire viewed from North East Valley. Photo / Tim Miller
Dogs staying in the kennels had been moved to a neighbouring property and she was about to leave.
She had been told by police it was a case of being on the "safe side" as emergency services were uncertain whether the fire would spread to her property.
"They are not sure because there is meant to be strong winds coming up [later this afternoon]."
Eight helicopters and three fire appliances were now fighting the fire.
A police spokesman said access to Rudd Rd had been blocked off, but so far there had been no evacuations.
Winds in the area were gusting up to 46kmh.
Smoke from the fire was being blown northeast, with residents in Halfway Bush reporting being swamped with smoke.
The wind is currently blowing northeast, but is forecast to switch to strong northwesterlies later today before changing to a westerly.
The MetService has issued a severe weather watch for Otago, including Dunedin, from 5pm today until 5am tomorrow, saying northwesterly winds could approach severe gale strength in exposed places.