Lacombe city officials say 22 rail cars were derailed along Highway 2A on Friday night, mainly carrying asphalt oil.
They say one rail car released 32,000 litres of tar oil.
The city says no nearby residents or Canadian Pacific Railway employees on the train were injured.
It says residents who were evacuated are now back home.
Canadian Pacific Railway says the cause of the derailment is under investigation.
On Friday night, RCMP in Blackfalds, Alta., said emergency crews were actively working to contain and manage the spill.
This report by The Canadian Press was first published July 3, 2021.
This story was produced with the financial assistance of the Facebook and Canadian Press News Fellowship