Firefighters appear to be gaining the upper hand against bush fires which have left the Australian city of Sydney covered in a thick haze of smoke for four days.

It sounds like Apocalypse Now. Eyewitness Jill Shepherd

Hot dry winds from the north-west failed to blow up as forecast, and calmer weather has allowed the fire crews to establish containment lines around the worst blazes.

But on Sunday the crisis shifted from suburban Sydney to a resort area in the Blue Mountains, where fires threatened a historic hotel building.

And there are still fears that strong winds might spark new conflagrations before cooler, wetter weather arrives from the ocean on Monday.

At least 48 homes have been lost since the crisis began on Wednesday but fire crews have managed to save hundreds more.

Hotel drama

For the fourth morning in a row, residents of Sydney awoke to a thick haze of smoke covering the city.

Water bombs have been dropped, but rain is wanted

There are more than 70 fires across the state of New South Wales, some of which continue to threaten homes in suburbs to the north and south of the city.

On the northern fringes, the situation is believed to be under control, but officers warn that the picture could change rapidly if winds pick up.

State premier Bob Carr, speaking from the scene of a major blaze in the northern suburb of Berowra, said the situation was still dangerous for hundreds of residents.

	:	Sydney bushfires
Fighting the inferno

The most dramatic scenes were in the Blue Mountains, 90 kilometres (56 miles) to the west of the city.

Flames 30-40 metres (100-130 feet) high roared up a mountain valley, engulfing two homes and threatening the 98-year-old art deco Hydro Majestic Hotel.

Hotel guests watched as helicopters swooped over the flames with water bombs

"It sounds like Apocalypse Now," eyewitness Jill Shepherd told Sky News.

Arson fears

The fires flared up on Wednesday in tinder dry forests encircling Sydney.

Winds gusting up to 60km/h (40 mph) have made the firefighters' job all the more difficult.

Such fires are natural to the arid bush in Australia - which is suffering one of its worst droughts in 100 years - but some of the blazes are thought to have been started deliberately.

An 18-year-old student arrested on Thursday was refused bail when he appeared in court on Friday, charged with arson. He faces up to 14 years in jail if found guilty.