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Authorities believe smoke is drifting over Goulburn from hazard reduction burns in the area.
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However a fire broke out on the Gurrundah Road, west of the city on Saturday afternoon.
RFS crews were called to the outbreak, some 20km from Goulburn at 3.30pm Saturday, operational officer, Mitchell Butler said.
The fire started in grassland on private property and has burnt out 10 hectares. Mr Butler said the property owner has mostly contained it by the time crews arrived close to 4pm.
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Three brigades, comprising11 personnel attended. Some remain on scene mopping up. The cause is under investigation.
Meantime, authorised burn-offs are also underway at Carrick Road, Carrick and Collector Road, Lerida.
NSW Fire and Recue captain, Chris Corcoran said his crews had been all around Goulburn and at this stage had not detected any fire within the city limits. The smoke haze was thinning out.
"I believe most of the smoke is coming from the hazard reduction burns so people are pretty safe," he said.
One of these is also underway in the Wingecarribee Shire and stands at 54.7 hectares.
A moderate fire danger rating applied on Saturday. The same rating is forecast for Sunday.
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