A bushfire emergency warning issued for the northern part of Yakamia, in the city of Albany on Western Australia's south coast, has been downgraded.

The warning for people in Hudson Road, Galle Street, Teatree Way, Grevillea Way, Agonis Gardens and Range Road is now at an advice level.

The blaze started near the intersection of Hudson Road and Range Road.

Fire crews on the ground and two fixed-wing water bombers have been tackling the blaze.

Bystanders watch a bushfire that flared in Albany, on WA's south coast. ( ABC News: Kit Mochan )

An earlier watch and act alert for an area bounded by Catalina Road in the north, Dragon Road in the east, Target Road in the south and Baltic Ridge Road in the west, in the northern part of Yakamia and the southern part of Lange, has now been cancelled.

Residents in all affected areas are urged to keep up to date in case the situation changes.