Fire crews responding in the first few hours were crucial in bringing a major blaze under control as it threatened Port Lincoln, on South Australia Eyre Peninsula, the Country Fire Service says.
The blaze roared into life during very hot and windy conditions on Monday but by early on Tuesday was contained with minimal losses.
Damage assessments were still under way with reports of at least two homes being destroyed.
The fire also burnt through about 280 hectares of grassland and scrub.
However, the CFS said the town had a lucky escape.
"The efforts of the initial response guys and girls can't be underestimated," operations officer Tristan Baldock told reporters.
"We've seen significant fires in Lincoln over the past 10 years. Those first three to six hours of a fire are very intense."
Mr Baldock said there was no doubt people were better prepared for fires compared to a decade ago, and the fire service had learned a lot since then.
"All those actions came together to really, I think, have a positive outcome to what could have been yesterday," he said.
Two damage assessment teams were on the fire ground on Wednesday afternoon and work was also under way to determine the cause.
Fire crews continued to damp down hotspots and planned to use thermal imaging cameras overnight to identify any areas of concern.
At the height of the blaze, about 100 firefighters were deployed to the area using 24 fire trucks and eight aircraft.
As a safety measure, SA Power Networks also cut electricity to about 10,000 properties but almost all services were restored before midnight.
Mr Baldock said the blaze was a timely reminder for people to be prepared heading into summer.
"It was our first day of extreme fire danger in the state yesterday and it could have had an impact that was far greater than what we ended up with," he said.
Australian Associated Press