The blaze is located in the area of Carpenter & West Coast roads, between Sooke and Otter Point.
Alison Hogan, who runs a B&B along West Coast Road, near the property where the fire started, said she first noticed smoke sometime after 10 a.m. PT Thursday.
"We were noticing some smoke in the wooded part across the street," she said. "I tried to reach the neighbour at that time, but couldn't get ahold of him."
With firefighters on the way, the bed and breakfast guests sprang into action.
"Some of my guests actually went out to see if they could do anything before the fire got too bad, pulling out some gas tanks and things like that," Hogan said. "And then they started helping on my side, hosing down the yard a bit because it's so dry out here that anything could have spread."
By the time the fire department arrived, the fire had taken over the shed and spread to the house.
Hogan said more firefighters arrived over the next several hours but the fire gradually worsened with embers flying around and starting small ground fires.
Residents near the fire in the area near Kemp Lake were told to evacuate the area and head to the Sooke Community Hall.
Provincial fire officials say local firefighters put in calls for help, and say conditions in the area are dry and windy.
More to come.
Google Maps: Carpenter Road at W. Coast Road