The alley is in the Balwin community near 132nd Avenue and 72nd Street.
Roseanne Rochette, who lives nearby, said she was returning home around 11:30 p.m. Tuesday when she spotted a black garbage bag sitting in the alley.
“It wasn’t much. I mean, it was garbage in a back alley, what I seen, and I thought nothing of it,” Rochette said.
The next morning, police knocked on her door and told her a head had been found in the bag.
Rochette said she's disturbed that it was found so close to her home.
“It’s eerie. Terrifying. … Way too close for comfort.”
Jesse Whitnack, whose apartment balcony overlooks the alley, said at least 15 EPS officers were combing through the alley by 7:30 a.m.
"All I know is I woke up and there were cops everywhere," he said.
Sources tell CBC News the head belongs to a man and the case is directly related to a body that was found last weekend east of Edmonton, near Ranfurly, Alta.
RCMP are investigating that case.