The Town of Athabasca has issued a water restriction as crews continue to fight the blaze at the Grand Union Hotel.
Residents are asked to avoid all non-essential water usage until the order has been revoked.
Water pressure across the town will be lower while the fire hydrants continue to be used.
"The hydrants are putting a drain on the reservoir right now," said town CAO Rachel Ramey.
At 2:50 p.m., Ramey said the restriction was still in place. The resevoirs need time to recover from the heavy-use period, although no timeline was provided.