The Collaborative International Dictionary of English v.0.48:

Balefire \Bale"fire`\ (b[=a]l"f[imac]r), n. [AS. b[=ae]lf[=y]r
   the fire of the funeral pile; b[=ae]l fire, flame (akin to
   Icel. b[=a]l, OSlav. b[=e]l[u^], white, Gr. falo`s bright,
   white, Skr. bh[=a]la brightness) + f[=y]r, E. fire.]
   A signal fire; an alarm fire.
   [1913 Webster]

         Sweet Teviot! on thy silver tide
         The glaring balefires blaze no more.     --Sir W.
                                                  Scott.
   [1913 Webster]

WordNet (r) 3.0 (2006):

balefire
    n 1: a large outdoor fire that is lighted as a signal or in
         celebration [syn: bonfire, balefire]