A bulldozer dug a line around a wildfire threatening homes in a central Oregon town, and residents have been allowed to return.

The fire broke out Monday afternoon near Gilchrist, which is along U.S. 97 in northern Klamath County.

About 120 homes were evacuated. Firefighters reported progress on the fire of about 350 acres, so residents were allowed to go home Monday night.

The Central Oregon fire center calls the fire human-caused but hasn't released specifics.

Firefighters said their task now is to improve the line around the fire and make sure flames don't jump outside it.