"A cottage has burnt down on a farm and there has been damage to a building," said municipal spokesperson Fanie Krige.
He said helicopters were being used to put out the fire.
The fire was also burning on the road between Hermanus and Stanford and had cut electricity in the area after burning down electricity poles.
As a result there were many power disruptions in the Gansbaai and Stanford areas, with the R43 road also being closed.
Krige said the fire had already been put out three times, but at each occasion had flared up again.
He said south easterly wind conditions and the mountainous terrain made it difficult for fire fighters to contain the blaze.
There was no immediate danger to the residential parts of Hermanus or Voelklip. – Sapa.