Firefighters have responded to a blaze at Mayday Hills in Beechworth.
The fire broke out in the roof of an artist's building at the site, near the perimetre wall of the former mental asylum, about 3pm on Tuesday.
Thick smoke poured from the weatherboard building, with the incident brought under control after about half-an-hour.
Five fire trucks were on scene with police.
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Geoff Brown, who runs ghost tours at the asylum, said the blaze appeared to be contained to the roof.
"The CFA was phenomenal, they were on scene really quickly," he said.
"It's an artist's building, where the patients used to do arts and craft."
It's unclear how the fire started.