Photographer Eddie Mitchell, who took the shocking footage on his drone, said the flames were 'leaping' from the building.
Resident Gavin Argent lives only a few hundred yards from the tip. He said: "What happened, in fact, funnily enough our daughter at university sent a test down saying there was a fire at Westhampnett tip. She'd seen it on Facebook or something, West Sussex fire brigade Facebook page.
"We looked out of the window and saw this enormous conflagration. It seems as thought there were two seats of fire — one over to the left and one over to the right — massive smoke on the right and a hellish inferno on the left."
A fire service spokesman said on Twitter this morning: "Crews are still on the scene of the fire at Stane Street, Chichester. "It is under control but is likely to burn for a number of days.
"The site is closed to the public for the foreseeable future."