RFS Inspector Rolf Poole said the fire in the Salt Ash and Campvale areas was threatening homes on Friday morning as 200 firefighters battled the flames under difficult conditions.
"The fire is coming into the backs of properties and we've basically got fire crews at just about every single house and they're waiting for the fire to come and approach the houses," he said.
"As it approaches, they can tackle the fire as it comes out of the scrub."
Inspector Poole said local RFS crews were being supported by four crews from northern Sydney, Fire and Rescue NSW crews and waterbombing helicopters and fixed-wing aircraft.
Among them is former prime minister Tony Abbott with his Davidson Brigade crew.
The forecast for strong winds in the area was a "bit of concern" for crews on the ground today, Inspector Poole said.
"The Bureau of Meteorology has forecast that the winds may potentially get to 90km/h today," he said.
Wind gusts in the Hunter region reached high speeds on Friday morning, with a gust of 93km/h recorded at 11.40 at Williamtown, and a gust of 87km/h recorded at Nobbys station in Newcastle.
Some residents were using garden hoses and buckets of water to protect their properties as the bushfire approached around midday.
With reports of network issues with mobile phone coverage in the area, the RFS has urged people to stay up to date with information on its website and social media pages, along with listening for the latest information on local radio and following the advice from firefighters and emergency service personnel.
Strong winds fanned blazes around the Newcastle area on Thursday, with 1300 hectares already burnt in the Salt Ash, Pacific Dunes and Campvales areas.
Nelson Bay Road, which reopened on Thursday night, has been closed again due to the fire and motorists are urged to avoid the area. There is currently no road access between Williamtown and Nelson Bay.
Medowie Road, Lemon Tree Passage Road and Richardson Road also remain closed.
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A service station in Salt Ash became packed to the rafters with emergency service crew and commuters after the closure of Nelson Bay Road on Friday morning.
"There’s no room, it's totally chaotic," BP Salt Ash service station assistant Carrie Clarke said.
She estimated there was "easily" 300 people on the premises of the petrol station, which she said is serving as an evacuation point and command centre for emergency services.
Students from Salt Ash Public School have been relocated to Fern Bay Public School today due to the fire activity.
Firefighters worked through the night to control the blaze that forced some residents to shelter in a supermarket on Thursday.
The fire was propelled by wind gusts of up to 85km/h on Thursday afternoon, but was downgraded to watch and act overnight before it was upgraded again on Friday morning.
with Newcastle Herald
Rachel Clun is a reporter at the Sydney Morning Herald. She was previously a reporter with the Brisbane Times and Domain.
Jenny Noyes is a journalist at the Sydney Morning Herald. She was previously a writer and editor at Daily Life.