Canadian soldiers slugged it out with Taliban insurgents near a remote Canadian outpost west of Kandahar.

The firefight occurred near Route Summit, a paved road being build near Panjwaii, said Lt. Sue Stefko, a spokeswoman for the Canadian Forces, on Sunday.

Canada's soldiers were at a fortified position known as Strong Point West, set up to defend the roadway.

The insurgents struck Saturday night with small arms and rocket-propelled grenades.

Canadian soldiers eventually called in heavy artillery, tanks and air support. A compound near their position was bombed.

"There was no indication that anyone was injured in that, Taliban or otherwise,'' she said.

The road itself will cut a one-hour trip for villagers down to 15 minutes.

Locals treat it as a big deal. Almost every day, the mayor and village elders come to inspect it.

"This road is very good. It will help us get our sick to hospital, our fruit and vegetables down the road quickly," said Haji Mahmoud, speaking in Pashtu.

Canadians hope that by building the road, commerce and stability will follow.

However, building the road meant the destruction of farmland.

While months of difficult bargaining led to the paying out of more than $200,000 in compensation, the complaining hasn't stopped.

"We're happy to have a paved road, but we have become jobless because we lost our land," said Jumakhan.

Route Summit crosses the Argendav River and joins up with a section on the other side.

Canadian solders suffered some of their heaviest losses during last fall's fighting. At least three soldiers were killed defending that road.

Sgt. Nathan Ronaldson, a Canadian military negotiator, said he brought that up during negotiations.

"When there were obstacles in the process, I remind them that it was paid for in Canadian blood and they should be a little more forgiving," he said.

With a report from CTV's Paul Workman and files from The Canadian Press