The burning alleyway is the first major obstacle you’ll come across at the beginning of Resident Evil 3 and you’ll need to dispatch the fire to progress further into the game and turn the power back on for the Subway.
First, enter Moon’s Donuts and exit on the other side of the restaurant. Once outside you’ll see the Kite Bros. Railway Building slightly to your right. Head over to the building and go inside.
There will be a single zombie inside the building in the hallway on the right. Deal with the zombie and behind it, you’ll see the fire hose laying on the floor. Grab it and return to the alleyway fire and attach the hose to the fire hydrant to put out the fire and continue on into the garage.
You’ll now be able to access the bolt cutters in the garage and can return to the Kite Bros. Railway building where you can get the shotgun. Resident Evil 3 definitely has its fair share of fire in it and luckily this one you can actually put out.