Kaitangata Chief Fire Officer Kevin Sutton is concerned further arson attacks in the township will eventually lead to somebody's death.
"If they are going to start doing this sort of thing, next time there could be somebody at home.
"I don't know what to do about this."
Kaitangata's volunteer fire service was called to a house fire on Christchurch St about 1.30am on Saturday, and found the house well alight.
It was the latest in a series of arson attacks in the small South Otago town during the past few years.
Two suspicious fires were discovered in a Kaitangata forestry block last Thursday, almost exactly one month after a derelict house on Water St was torched.
It was the second arson attempt on the Water St property.
In 2008, there were three arson attempts in one week on a house at the centre of a murder investigation before it was demolished by police.
Another derelict building empty for several years was targeted in 2004.
Mr Sutton said while the previous attacks had been on derelict buildings in the area, the latest attack was on a property being renovated.
"It's not like this was a derelict building. It belongs to a young fellow who was doing it up. He's gutted."
The owner of the house, who declined to be named, said he had recently spent about $16,000 on renovations.
The house had a new bathroom and had been freshly painted.
He had been considering buying two more properties in Kaitangata, but was now having second thoughts.
"This is a suspicious fire," Mr Sutton said.
"It started in the middle bedroom and it took us 30 minutes to bring it under control."
Firefighters battling the blaze had to wear breathing apparatus to get into the house, he said.
The fire spread into the ceiling cavity, causing extensive heat and smoke damage.
Balclutha police have requested information in relation to any person seen in the area of the latest fire and said it was known that a large number of young people were attending a party in the vicinity.
Mr Sutton encouraged anyone who saw activity they considered suspicious to call 111.
