A blaze at the former Waipukurau Hospital nurses' quarters has been been contained by Hawke's Bay fire crews.
Strong winds fanned the flames to a nearby property, but that was quickly brought under control.
Twelve fire engines arrived at the scene around 1pm on Monday to find the two-storey building well alight.
Children at the nearby Terrace School were bussed home through an alternative route, as cordons had cut off road access.
There have been no reports of injury.
Fire investigators are also at the scene.