Fire investigators hope to know later today what caused the blaze on Wednesday morning and insurers hope to know within a fortnight the way forward for the business.
The popular facility was heavily booked in the lead-up to Christmas and the blaze leaves many groups and individuals having to make last-minute changes to their end-of-year functions and celebrations.
But it is the locals who say they will feel the loss of the tavern more than anyone else.
George Steel said he had been drinking there since it opened in the early 1970s.
He was devastated at the loss of the pub, which had been the focal point of the community for nearly four decades.
"Everyone gathers there for a drink and a catch-up, but we won't be able to do that for a while," he said, when contacted yesterday.
Waihola was lucky to have had several good pub managers over the years and he and others spoken to were full of praise for present managers Kevin and Annette Reid, who had been in charge for nearly three years.
He doubted locals would go elsewhere for their regular tipples.
"Not with drink-driving; and we have no taxis out here either, so there's no point. But we will be back when they reopen . . . Until then, I think most of us will stay at home."
Another regular, who did not want to be named, said the tavern was one of the best things about the lakeside township.
It had a a great atmosphere, excellent meals and a family feel, he said.
"We will be lost without it, to be honest."
The Milton senior police officer, Constable Steve Griffiths, said there was rarely any trouble at the Waihola tavern.
It was always well run and police had few problems with fights and other alcohol-related matters.
Fire investigator Mike Cahill, of Invercargill, hopes to pinpoint the source of the fire today.
He believed the fire originated from one of three possible sources in the kitchen area, but it was hard to determine the exact spot because of the fire damage.
He declined to elaborate on the sources in question, but confirmed the blaze was not being treated as suspicious.
Insurer Crombie Lockwood visited the site yesterday and spokesman Alan Race said various reports were being worked on to provide some direction in the coming weeks for both the insurer and the Reids.
While it was a substantial fire, the large amount of concrete and stonework restricted damage in some areas but other parts of the buildings may yet be unsafe.
Builders were there yesterday securing the property.
Mr Race said all agencies were working together to avoid any unnecessary delays.
Insurers realised the tavern was a focal point for the community.
