Cyclists on the popular Queenstown Trail noticed smoke billowing from an old makeshift cabin behind the white cottage at 90 Whitechapel Rd and called emergency services at 2.30pm.
Arrowtown firefighters responded first, with their call for back-up answered by Frankton firefighters. They found the one-storey property unoccupied and the rear engulfed in smoke.
A team of two firefighters wore breathing apparatus and located the fire in the ceiling of the cabin, then began to extinguish the blaze, with two more firefighters in breathing apparatus ready in support.
Senior Firefighter Garry Hall, of Arrowtown, said at the scene part of the cabin's corrugated roof and insulation had to be removed to get closer to the flames in the ceiling.
There was a lot of smoke damage inside, he said.
Mr Hall estimated the cabin was 50 to 60 years old and the cottage it was joined to was estimated to be more than 100 years old. He did not know if the property was insured.
The female occupier of the cottage appeared to be in shock and was being comforted by friends at the scene. The occupier declined to comment.
Southern Region Fire Safety Officer Stuart Ide said he was working last night to identify the cause of the fire.
