Damara resident Bertin Andjipassera told Reuters news agency that people have been fleeing their homes.
BBC: Central African Republic rebels halt advance on Bangui
The rebels' advance started last week when they pushed past Damara, a town 75 kilometers (47 miles) to the northeast.
NPR: C. African Republic Hospitals Looted After Coup
Damara had marked the line of control drawn by regional forces in January, following an accord signed in Libreville, the capital of neighboring Gabon.
On Friday, the rebels seized Damara, which had been the boundary line drawn up by regional forces before the January peace accord was signed.
NPR: Rebels Enter C. African Republic Capital
On Friday it was reported that they had taken a checkpoint in the town of Damara, about an hour's drive from Bangui, where regional Fomac peacekeepers are based.
BBC: Central African Republic rebels 'enter capital Bangui'
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