UPDATE: A GRASSFIRE threat to Oura in southern NSW has eased, but the blaze is still out of control, firefighters say.

An emergency warning for residents of Oura, near Wagga Wagga, was downgraded to a watch and act alert at around 4pm (AEDT) today.

The Rural Fire Service said the threat to Oura had eased, though the blaze about 14km east of Wagga Wagga remained uncontained.

Firefighters assisted by aircraft have been battling the fire in very high fire danger conditions.

Residents have been told to remain alert and be prepared to take shelter if conditions change and not leave because of road closures in the area.

Farmland in the area remains at risk from the fire.

A witness told AAP the fire had come close to a number of farm houses to the northeast of the township and families had evacuated from the properties.

The witness described the situation as "pretty tense".

He said the fire started with a number of fronts which merged into one.

Another witness estimated the fire front as being about 14km wide.