The Fire Dog was rumored to have caught on fire when the Hunter Quarry was still in operation, most likely in an accident involving an explosive. It is said that the dog survived the accident and can still be seen roaming around the quarry at exactly 21:00. The dog is peaceful and will only run away, trying to stay out of the player's field of view. The myth was originated by a YouTube user named TheAlbert17. He claimed that a friend took a picture of a dog in the quarry. He did, in fact, find something, but most of the myth hunting community believed it to be an edited video, so there has yet to be any more substantial evidence. The myth is considered false, as the creator was debunked as being responsible for a wide number of hoaxes, including the Smoke Monster.
A suitable possibility is that the object caught on fire, believed to be the Fire Dog, is actually a part of an airplane due to the frequent plane crashes that happen in or around Hunter Quarry. The Fire Dog might be just the burning remains of a crashed plane that might have collided with something.