There are no injuries.
RCMP said crews were on the scene Wednesday morning fighting the blaze and dealing with the derailment.
None of the 16 derailed cars had caught fire, the RCMP said.
However, one of the cars has leaked oil. It's not known how much oil is involved.
As a precautionary measure, school has been cancelled for the day in the town Landis, 90 kilometres south of North Battleford.