The fire was triggered by a child playing with a lit candle in Palaw town, local police was quoted as saying.
As the village area was not accessible by fire engines, firefighters had to battle the blaze with water pumps.
The fire caused a total loss of property to 75 million kyats (over 585,000 U.S. dollars), the police said.
The victims were evacuated to a nearby village where they were given temporary shelters.
Relief supplies are being brought in to the fire-ravaged area, the report added. (Xinhua)