It is believed the fire swept through the browning grass and shrub next to the busy main road before reaching piles of discarded tyres.

The blaze has covered the town in a blanket of black smoke as the smoldering fire continues to burn through the tyres and surrounding bush.

It is unclear how the fire started, however, fire crews are not ruling out the possibility it was started by a firecracker thrown from a car.

July 1, Territory Day, is notoriously busy for emergency services as they are spread thin across the Top End to control fires born from crackers.

Last year, bush fire volunteers, were called on to douse an out-of-control fire on Gorge Road, which ripped through a large property and came dangerously close to burning down a house.

It was a case of cracker-happy carelessness, which emergency service crew say is far too common.

Emergency services are monitoring the fire, while residents have poured in to get a closer look.

While very close to the Katherine Speedway Track, it appears to be safe from the flames for now.

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