B.C. fire crews are continuing to fight an out of control wildfire along the Sea to Sky Highway.

The blaze, which is on a steep hillside between Horseshoe Bay and Lions Bay, is believed to have been started by a power line early Sunday morning.

After an aggressive attack on the ground and in the air on Sunday, fire crews from Metro Vancouver worked on the fire overnight. Provincial firefighters and aircraft returned to the area Monday morning, including a helicopter which started bucketing water on the blaze around 7 a.m.

Drivers are being warned there may be delays along the highway again Monday, with a single lane moving in each direction for a few kilometres between Horseshoe Bay and Lions Bay.

The northbound lanes of the highway are now being used for emergency vehicles and water supply for crews fighting the fire on the ground.

Police are warning drivers there will be helicopters and planes in the area again on Monday.

Overnight, an orange glow could be seen from the area where firefighters were working, with a plume of smoke rising from the hillside as the sun came up. In daylight, charred trees and debris could be seen not far from the highway.

The fire was first reported at around 3 a.m. Sunday morning and BC Wildfire Service had crews on scene by 4 a.m. Traffic was slow throughout the day and by Monday morning, one lane was open in each direction just north of Ansell Place. 

People living in a cluster of homes just down the slope from the fire awoke to the alarming sound of helicopters circling overhead early Sunday morning.

"We realized pretty soon that there was smoke in the air and then we realized that the choppers were actually dropping water up on the mountainside on a fire, perhaps three to 400 metres away from our home," said John Kusnir.

In the early hours of the fire fight, Kusnir and his neighbours were anxious the flames could come roaring down the hill towards their homes.

"Well, everyone would, of course," Kusnir said. "We were all ready to go as soon as possible if we were told that we had to evacuate."

So far, crews have kept the blaze at bay, on the other side of Highway 99.

The terrain of the area has made it challenging for crews to understand just how large the fire is, but officials estimated it to be three hectares in size on Sunday.

"The fire is burning on a very cliffy area," said the service's spokesperson, Donna MacPherson.

"It's moving along the surface of the ground underneath the trees. So, as the crews are looking down through the trees, they're trying to ascertain about the smoke that they're looking at, whether that's indicating a drift or whether it's indicating the edge of the fire."

She said the area where the fire is burning has a high fire danger rating due to drought conditions.

"Our drought codes are close to what they are at the end of July and the beginning of August," MacPherson said. "So it is very, very dry out there.”