Police have charged the 47-year-old woman following the fire at the Katherine residence about 1am yesterday.

The woman allegedly used a lighter to set fire to a couch cushion, causing extensive damage to a door and surrounding outside areas, police said.

At the time of the fire, the building occupants were asleep.

They were woken by the sound of a smoke alarm and exited the building uninjured.

One of the building occupants extinguished the fire with a garden hose.

Police located and arrested the woman around 4pm yesterday.

She was due to appear in Katherine Local Court today to face charges of arson and recklessly endangering life.

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