Firefighters have contained a blaze which came close to homes in West Albury.
Crews were called to McLennan Street about 1.15pm on Thursday.
Residents near a burning vacant block used garden hoses to prevent the flames from spreading to their homes.
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The fire had started in dry grass and burnt towards a fence, damaging a vehicle.
Fire and Rescue NSW Inspector Frank Finlay said firefighters quickly brought the incident under control.
A fence and vehicle were burnt in the incident.
"It definitely had the potential to spread to surrounding homes," he said.
"It was a great save by Fire and Rescue NSW crews.
"The neighbours quickly got on their garden hoses and slowed it down."