THE bushfire threat facing the eastern Victorian town of Licola has been downgraded, but the community remains isolated.
Licola was placed under an emergency warning when a large bushfire threatened the town on Friday morning, but it was downgraded to a watch and act advice on Friday afternoon.
The town's only access route, Licola Road, remains closed to all traffic.
A spokeswoman at the State Control Centre said firefighters were now focusing on the town of Glen Falloch, around seven kilometres south of Licola.
"The fire is still creating spot fires approximately one to two kilometres ahead of the fire front," the spokeswoman told AAP.
Licola, 254km east of Melbourne, is a small village at the southern gateway to the Alpine National Park.
The township is owned entirely by the Lions Clubs of Victoria and southern NSW, the club says.
Licola Wilderness Village program manager Cherry Wake said the village, which operates a school adventure camp and caravan park, evacuated visitors on Thursday night.
"Last night we evacuated about 61 children and 15 adults," she told AAP on Friday.
About 10 staff and 20 caravan park residents remained in the village, Ms Wake said.
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