At the height of the fire, fueled by the Squamish Terminal dock's creosote timbers, the thick black smoke billowing over the small town could be seen for kilometres.
In a statement released Sunday, Environment Canada said smoke from the fire, which smoldered for days, is now negligible and fine particulate concentrations have returned to "more expected levels."
Squamish Mayor Patricia Heintzman said she was hopeful that the fire would be completely extinguished by the end of the day.
However, open burning restrictions remain in effect within a 20 kilometre radius surrounding Squamish municipal hall.
The government says until further notice, no new fires may be started, nor may additional material be added to any existing ones.
Nobody was hurt in the fire. Its cause is still under investigation.