Firefighters from across Nottinghamshire and Leicestershire have been tackling a large fire at the Hathernware Industrial Estate.
The blaze broke out at a scrap car factory close to the railway line.
Earlier today, Twitter users shared videos of a thick, black smoke near the Nottinghamshire village Sutton Bonington.
Nottinghamshire Fire and Rescue Service said there have been 8 appliances dealing with the fire. They have advised residents to keep windows and doors closed.
The police has confirmed that the houses were evacuated.
East Midlands Ambulance Service have been supporting the fire crews with a crewed ambulance and a paramedic.
The fire has caused major travel disruptions.
Trains travelling north of Leicester were cancelled all afternoon due to the incident near the line. East Midlands Trains have advised passengers not to travel on Sunday.