An area just south of Red Deer was placed under a state of emergency after a massive fire destroyed an apartment building in the community of Penhold.

Smoke and flames could be seen billowing from the complex early Thursday evening – residents of the building said the smell of smoke alerted them to the fire.

“As I was leaving the apartment, the screen door and the whole balcony was on fire,” Eric Desjardins said. “So I got to the bottom of the stairs and as soon as I was on my way out the glass doors, all the flames and stuff rushed into the hallway.”

The Penhold Fire Chief said a volunteer firefighter also lived in the building, and helped make sure his neighbours escaped as he made his way out of the building.

“By the time he noticed it and checked on it, the building was already full of smoke,” Fire Chief Jim Pendergast said. “[He] did fabulously, pulled the fire alarm, kicked in doors to get everyone out.”

Highway 2A was shut down as fire crews from around Red Deer County and Innisfail responded to battle the blaze.

Two people were sent to hospital, one pregnant woman was also taken to hospital to deliver her baby.

The Mayor of Penhold said donations quickly poured in to help those affected and he couldn't be more proud of how the town is coming together.

Water rationing has been instituted in the area, and at midday Friday, the state of emergency remained in effect, and at last word, the fire continued to burn, as crews worked to put out hot spots.

With files from Laura Tupper and David Ewasuk