The Sunshine Coast town of Gibsons is rallying together after a spectacular fire destroyed two iconic waterfront buildings on Friday afternoon.

The fire broke out at around 3 p.m., engulfing Coles Marine Diesel Repair and the Wynken Blynken Nod Backpackers Hostel and sending flames hundreds of feet into the air.

Hostel owner Suzanne Senger bought the building eight years ago, and was living in it when it was destroyed. She spent Saturday "picking through the remains" of her belongings, removing the few possessions that were not charred.

"Found a few chunks of things: memories, pictures," she said.

The community was quick to offer support, organizing a makeshift fundraiser on Friday night that raised almost $300 for those who lost home or property in the fire.

"It's a tough loss for the people that lived there," Gibsons town planner Jeff Paleczny said. "It's a hard thing to recover from."

On Saturday, locals gathered at the scene of the fire to share memories and photographs of the historic buildings. Mayor Barry Janyk was among them, and said he was proud of the town's response.

"We can get all the accolades in the world, but what makes a great town is how they deal with a disaster like this," he said.

There will be many more charity events and fundraisers in the coming weeks, Janyk added.

Gibsons Deputy Fire Chief Bruce McClymont called the fire one of the biggest the town has seen in 40 years. Crews were on the scene within minutes, but the buildings could not be spared.

Investigators have not determined the cause of the blaze, but it's believed to have started under a nearby wharf. Authorities have not confirmed speculation that humans were involved.

With a report from CTV British Columbia's Stephen Smart