The stone and wood cottage, believed to date from the 19th- or early 20th century, was well ablaze when two appliances from Arrowtown and Frankton stations arrived just after 6.30pm.
Arrowtown Chief Fire Officer Gary Hall said about 25 firefighters, including volunteers from around the area, brought the fire under control by 8pm. Mr Hall said the structure was extensively damaged by smoke, with "four or five rooms" destroyed by fire.
One appliance from Arrowtown was still in attendance at 9.15pm, dampening down hot-spots.
An appliance was to monitor the structure overnight and fire safety investigators would examine the house today, he said.
It was not known if the cottage was occupied at the time of the fire, but no injuries were reported to emergency services, a fire services spokesman said.
The owners would not comment on the fire when contacted last night.
A fire services spokesman said three appliances from Invercargill and Kingswell responded to a house fire in Lithgow Pl, Invercargill, last night.
No-one was injured in the blaze.
