A Canadian Pacific train jumped the tracks this morning near Guernsey, Saskatchewan.
Guernsey is about 100 kilometres southeast of Saskatoon.
The freight train was engulfed in flames.
RCMP say residents are being evacuated from the area. For the evacuees, a temporary centre has been set up in Lanigan.
The train was carrying oil.
Highway 16 is closed in both directions.
An update will be provided this afternoon.