UPDATE: UP to 40 homes may have been lost in the Toodyay fire as authorities assess damage to the West Australian wheatbelt town, northeast of Perth.
A fire, which started at lunchtime (WST) yesterday, raged through the small community 80km from Perth, burning almost 3000ha of land.
Fire and Emergency Services Authority (FESA) spokesman Allen Gale said the extent of the damage was yet to be realised.
"We can confirm that 20 homes have been lost, but early indications of people moving through the area is that the number could double,'' Mr Gale said.
"House after house has been destroyed, in a line, and there are still pockets where the fire is still burning.''
Three firefighters have received medical treatment for smoke inhalation and dehydration.
FESA says it is thought a resident from the Toodyay area is receiving treatment for burns at Royal Perth Hospital.
Electricity and communication to the area is being restored after power poles and lines were damaged by the fire.
Western Power has been asked to turn off electricity in some areas to make it safer for firefighters.
Four water-bombing helicopters and hundreds of firefighters spent the night trying to control the blaze, as strong winds fanned flames that reached up to 2m high.
Homes in Majestica Waters, Lozanda Heights, Vernon Hills, Nottingham Road, Sherwood Road, Folewood Road, Drummondi Drive, Adenanthus Road and Stirlingia Drive have been affected by the fire.
There is no access to the fire zone.
Residents took refuge at the local caravan park, recreation centre and at the Northam hospital and school.
Mr Gale said the reality of the devastation was starting to sink in.
"There's a lot of shock for the people right now,'' he said.
"The people directly affected by the fire, obviously, want to get back to their properties, but the area is very unsafe.
"There's trees on roads, smouldering, and others are threatening to fall down.
"It's a mess out there, but people in town are helping and wanting to offer assistance, which is great.''
Mr Gale said that at this stage the fire was not being treated as suspicious.
WA Premier Colin Barnett is heading to Toodyay to speak to locals.
A town meeting with fire and rescue authorities will be held at midday (WST) to update residents on the situation.
The fire danger for the area remains very high, but cooler temperatures and fresh southwesterly winds are expected to help the firefighting efforts.
Another fire at Dandaragan, north of Perth, is also worrying firefighters.
It had burnt through 5000haof mostly scrub and pasture by early this morning.
While no homes had been lost, there were unconfirmed reports of sheds being destroyed, FESA spokesman Kevin Archer told AAP.
