The Waipa Tavern in the Waikato town of Ngāruawāhia was so badly damaged by fire overnight that it will have to be demolished.
The building had been derelict for several years, since its owner died.
Fire and Emergency spokesman Josh Pennefather said it was a major blaze.
"It was well involved in fire when we arrived, it's a two storey building, we had five fire trucks as well as two ladder trucks in attendance."
Waikato mayor Allan Sanson said the region had lost a slice of history.
"I didn't realise that the original Waipa burnt down at the turn of last century and effectively it was rebuilt around about 1904, so yeah it's always sad when you lose these things cause New Zealand's not great at hanging onto historic buildings."
It is not known what caused the fire but Sanson said the building had become too unstable to save.