People in Gracetown near Margaret River had been alerted to a bushfire just after 1.30pm on Sunday that was threatening homes and lives.
It has now been downgraded to a "watch and act" alert level, with emergency services saying the threat to homes is reduced.
People are advised, however, to leave or get ready to actively defend.
The fire, which is now "controlled but not contained", started near the intersection of Caves and Cullen roads in Gracetown.
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