Meteorologists had been tracking a possible tornado on doppler radar five kilometres north of Elkwater, according to Environment Canada.
It was part of a severe rotating thunderstorm that also has the potential to produce large hail, strong wind gusts and heavy rainfall.
Another tornado warning issued for the County of Forty Mile near Manyberries has also ended.
Environment Canada says the storm created a funnel that was spotted near the southwest shore of Pakowki Lake at 6:45 p.m. MT.
Many areas of southern Alberta are under weather warnings tonight.
Severe thunderstorm warnings have been issued for Cypress Hills Provincial Park, Foremost, Cardston, Fort Macleod, Magrath, Lethbridge, Taber and Milk River.
Rainfall warnings have been issued for Banff National Park, Airdrie, Cochrane, Olds, Sundre, Calgary, Crowsnest Pass, Pincher Creek, Waterton Lakes National Park, Kananaskis, Canmore, Okotoks, High River, Claresholm, Rocky Mountain House and Caroline.
People in or near these areas should be on the lookout for adverse weather conditions and take necessary safety precautions, officials say.
"Be prepared to take shelter immediately in a basement or reinforced structure if a tornado develops," said an Alberta Emergency Alert earlier in the evening.
"Get low and put as many walls between yourself and the storm as possible. Stay away from windows, doors and outside walls. If you are on the highway and cannot avoid the tornado, seek shelter in a ditch or ravine."
Environment Canada says vehicles, mobile homes, cottages, boats and any tents or trailers are not safe to be in if a tornado develops in the area.
Albertans can report severe weather to Environment Canada by calling 1-800-239-0484 or emailing firstname.lastname@example.org.
High streamflow advisories
High streamflow advisories have been issued for the Elbow River, the Bow River upstream of Calgary and the Highwood River.
An advisory is also in place for the Red Deer river basin upstream of Gleniffer Reservoir and the Little Red Deer River.
A heavy rainfall advisory remains in effect for Calgary and many parts of southern Alberta on Thursday.
As much as 150 millimetres is expected to fall in some parts of the province before Friday.
The Alberta Emergency Alert system says while no major flooding is expected, minor flooding is possible in low-lying areas.Suggest a correction