The public is being asked to avoid the area near Crews Road east of Gilroy, which has since spread eastward to the Canada Road area. The fire is advancing at a moderate rate, according to CAL FIRE, which said two structures have burned and others are threatened.
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The fire was first reported at about 2:45 p.m. Sunday.
Additional air and ground equipment have been called to the scene.
Stay with ABC7 News for the latest details on this developing story.