
Firefighters were having difficulty combating the blaze because of the topography of the city, which is surrounded by dozens of steep hills where most people live.
President Michelle Bachelet has declared the city a catastrophe zone, which puts the armed forces in charge of maintaining order and evacuating thousands of people affected by the smoke and flames.
"This is the worst disaster I have seen," regional governor Ricardo Bravo said. "Now we fear that the fire will spread to the center of the city, which would increase the severity of the emergency."
Volunteer firefighters found the charred remains of two elderly people on a street in the port area, Chilean navy Adm. Julio Leiva said. No further details were given about the deaths.
Thick clouds of smoke surrounded the city's prison and nine pregnant inmates were transferred to a detention facility in the nearby city of Quillota. Prison authorities were evacuating another 204 female inmates to a sports arena. The more than 2,700 male inmates will remain at the prison for the time being, prison guard commander Tulio Arce said.
Valparaiso Mayor Jorge Castro said "at least 500 homes have been destroyed by the fire." He said shelters for those forced to flee have been set up. The city was experiencing cuts to the electricity supply, he said.
While firefighters, police and forest rangers battled the blaze, Chilean marines in combat gear patrolled streets in the city to maintain order and prevent looting.
The fire started Saturday afternoon in hills on the edge of the city and spread rapidly because of strong winds. Hot ash rained down on the city early Sunday, causing respiratory problems among the population, especially children and the elderly.
Valparaiso is about 75 miles northwest of the capital, Santiago.




Comment: Multiple wildfires in recent times across the globe:
Outbreak of multiple wildfires in central Oklahoma
Wildfires break out across Carolinas despite cool temperatures
Federal government steps in to deal with record number of wildfires in Western U.S. this winter
In January 2013 there were zero wildfires in California - In January 2014 there were over 400 wildfires
Huge wildfires across Scottish Highlands
Many Tibetan monasteries and famous sites destroyed this winter by mysterious 'wildfires'
256 wildfires suddenly break out in Victoria, Australia amid heatwave
Wildfires heat up the Arctic as climate change frazzles the north of Siberia