RIO GRANDE CITY – State investigators are now working the case of a deadly fire at a Rio Grande City restaurant.

The early morning fire affected several families and had neighbors on edge.

A 31-year-old woman was inside the building and died in the fire. The owner of the restaurant said the woman would sometimes spend the night at the business. The fire chief says that’s not against the fire code.

Fire Chief Manuel Muniz says all businesses are subject to an initial fire inspection when they open. They check sprinklers, alarm systems, fire hydrants and exits.

The city told CHANNEL 5 NEWS there may be other city codes preventing a permeant dwelling inside a business.

Watch the video above for the full report.