The Cessna 206 smashed down near the entrance to the market in Santana de Yacuma, a town about 500 kilometres north of La Paz.
Regional police commander Mauricio Miranda told the state news agency ABI that the plane was destroyed and all four occupants died. He said three women selling items in the market suffered injuries.
Miranda said the cause of the accident is under investigation. The plane was flying from Santana de Yacuma to Trinidad, which is the capital of Beni region.
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