A fire in Alliance, 200km southeast of Edmonton, destroyed a landmark hotel on the village's main street early Sunday morning.

"It’s an old hotel, wood framed. And it burnt all the way to the ground," said Dell Wickstrom, a village councillor.

Wickstrom says the fire at the Commercial Hotel started just after 2 a.m. on Sunday. Wickstrom says firefighters were unable to save the building, which was one of the oldest in the city.

"A big building like that burning down on our main street, it puts a big hole on our main street."

No one was injured in the fire.

Wickstrom says the town was forced to issue a water conservation alert following the fire, because of the amount of water used to battle the blaze.

He says the town’s water supply has been replenished and residents no longer need to restrict water use.