The fire broke out at a home in the 400 block of Main Street. Firefighters were on the scene on Wednesday afternoon, and the home was seen engulfed in flames.
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The home was built in 1902, according to the homeowners.
No one was injured in the fire, authorities said.
Drone footage showed smoke rising from the historic home as firefighters battled flames in the snowy and wet conditions, initially struggling to get enough water.
"Directly across the street is one of the oldest hydrants in town," Oswego Fire Protection District Bat. Chief Travis Martinez said. "It's on a four inch water main, so water supply was an issue, so we ended up having 800 feet of five inch going down to a different hydrant off of a different lead."
The response to the fire was the likely cause of two water main breaks that are impacting water pressure in the downtown area south of Washington, Oswego officials said.
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"Because of the fire and the amount of water that they're drawing through their engines and trucks down there, it just took everything that these pipes had," said Brad Reese, Assistant Director for the Village of Oswego Public Works Department.
Access to water was one of the main challenges for fire crews, in addition to the fast moving flames.
"It had gotten into the attic, the roof was burning, and we had to pull out," Martinez said.
Once the fire was out, fire crews were able to retrieve family heirlooms and photos for the family of six that called the place home.
"There's always some warmth in being able to give that back to them and give them some sense of closure and they said it, in their words they said, 'you know what? We can get new things. We have our family we can get new things," Martinez said.
The homeowners hope there can be some way to restore the house back to its old glory. They were grateful no one was home at the time of the fire and that no one was injured.
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The home has been referred to by residents as the "Pillars House." A neighbor said the house is a beloved historic home in the neighborhood.
"We love this home. Everybody does," resident Jan Alexander said.
A boil order was issued for areas from Main Street south to Route 71 and from Wilson Place to Forest Avenue. It will likely remain in place until Friday morning, Oswego officials said.
Oswego officials said residents may experience low water pressure. The public works team notified businesses and residents by going door to door.
Fire crews stayed in the area until late Wednesday evening to monitor the home for any potential flare ups, officials said.
The cause of the fire was not immediately known.