A teenager has been arrested and charged with arson in relation to a Waterloo house fire that broke out early Tuesday morning, according to Waterloo Police. The fire broke out around 2:20 a.m. at 328 Edwards St. According to Police, a 16-year-old girl was charged with second-degree arson. She will be charged as a juvenile. No injuries were reported in the incident. The house received damage to the second floor.