The Department of Fire and Emergency Services said on Sunday the fire started near the intersection of Churchlane Road in Kalgan.
The fire was impacting an area bounded by Churchlane Road to the east, Baker Junction Reserve to the west and South Coast Highway to the south in parts of Kalgan and Napier in Albany on Sunday night.
People in the advice area are in danger and need to act immediately to survive, with authorities warning there is a threat to lives and homes.
People are advised to leave immediately, closing all doors and windows of their homes, or to find a room in the house away from the fire front if it is too late to leave.
People who have already left are advised it is too dangerous to return.
An evacuation centre has been set up at the Albany Leisure and Aquatic Centre at Barker Road, Albany.
A bushfire watch and act alert is also in place for people in an area bounded by South Coast Highway to the north, Hunton Road to the east, Mead Road to the west and Mount Boyle Road to the south in parts of Kalgan.
There is a possible threat to lives and homes as a fire is approaching and conditions are changing.
The bushfire is moving fast in a south-easterly direction and is not contained or controlled, with ember/spot fires 500 metres ahead of the fire.