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Police look into Melbourne warehouse fire

Black, foul-smelling water used to extinguish a Melbourne warehouse fire has got into the Yarra. (AAP)

An inner-Melbourne warehouse fire is under police investigation as a nearby school closes for the day because of air quality concerns.

The fire in Southbank took more than two hours to control, with fears it might spread to neighbouring properties.

Around 50 firefighters were needed at the blaze and Victoria Police are investigating how it started.

On Thursday morning, nearby South Melbourne Primary School sent an alert to parents, advising them to keep their children at home for the day because of smoke from the fire.

By mid-morning, Environment Protection Authority Victoria air monitoring equipment had been removed from Southbank.

But some water used to extinguish the fire has ended up in the Yarra River, with the EPA saying it will be "a black colour and very odorous".

It added a boom will be installed in the river to contain the tainted water.

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