A huge fire engulfed a property next to an industrial estate in Great Harwood.
The fire took hold of the building, off Meadow Street, in the early hours of the morning.
Lancashire Fire and Rescue Service said crews were still at the site and an investigation has been launched.
The land around the industrial site has been the scene of a number of fires in recent years.
A Lancashire Fire and Rescue Service spokesperson said: "At 2.01am, five fire engines and an aerial ladder platform from Lancashire attended a domestic building fire on Meadow Street in Great Harwood.
"Crews used four hose reel jets to extinguish the fire.
"Crews remain at the scene and the fire investigation is under way."
Sarah Smith, MP for Hyndburn, said: "I know many residents have been affected by the fire in Great Harwood, and the damage it has caused has left people without access to water on one of the hottest days of the year.
"I have spent the morning in contact with United Utilities and I am pleased to see that progress is being made at pace. We expect some households to start seeing this resolved within the coming hours.
"Alongside Councillor Noordad Aziz, I have also been working to ensure affected households have access to water. I can confirm that both Haidri Foods and Morrisons in Great Harwood have agreed to donate supplies to those in need.
"If you are collecting water from Morrisons, please report to customer services.
"I will keep you updated as the situation develops. In the meantime, please email me at sarah.smith.mp@parliament.uk or call 01254 926487 if you need further support."
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