Woodstock police are investigating a possible early morning arson.

Around 3:00 a.m. Sunday while on patrol, an officer noticed a fire at a housing complex on James Street near Clarke Street.

The fire had already engulfed a recycle bin and was spreading to the eaves and roof of a nearby storage shed.

Police had to evacuate nearby neighbours while Woodstock Fire Service extinguished the fire.

Damages were contained to the roof and eaves of the shed, along with water and smoke damage to sheds contents.

A vehicle parked nearby incurred melted door panels and hub caps on the driver's side.

Damage is estimated at $4000.

Anyone with information about this incident is asked to contact the Woodstock