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The home had been given to the fire service by a member of the Port Chalmers Volunteer Fire Brigade, who wanted to clear their land.
Dunedin Central Fire Station station officer Ant O’Neill said that such a thing did not happen often.
"To get something like this is one out of the bag. When we do get a house like this we try to make the most of it."
Each room had been set alight in a controlled way and then put out to "teach the characteristics of fire".
About 30 volunteers and career staff from the Ravensbourne, Port Chalmers and Waitati stations were involved in the fire training, which began at 7am.
It was expected the house would burn until 6pm last night.