UPDATE: 9:16 p.m.
The Penticton RCMP has confirmed it was a house fire and that no one was injured in the blaze.
Both the fire department and RCMP responded to the scene.
Castanet is receiving reports of a structure fire on Valleyview Road in Penticton.
Witness Stuart Biggs said he was driving home from Keremeos when he saw the fire on the hill, above the Skaha Lake marina.
He believed about four fire trucks were on scene.
Castanet will provide more details as they become available.