As a result of the incident, a 67-year old woman died of respiratory causes, while three fire-fighters have sustained injuries.
According to the Interior Ministry, more than 4,500 people have already been evacuated, while more than 10,000 others may still be moved.
Officials said the fire started at an illegal refuse dump on Friday, and spread rapidly aided by strong winds and affecting about 300 hectares of land.
Memories of a forest fire last April in Valparaiso, Chile, that killed 15 people and injured more than half a million others still remains fresh in the minds of Chileans.
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