The bushfire ravaged Tasmanian town of Dunalley will be rebuilt and restored to the happy place it once was, the state's acting premier has said.

Dunalley is the town worst by the southern Tasmanian fires with around 65 homes and the coastal town's school destroyed.

Police are spending Sunday searching through destroyed houses in Dunalley looking for victims of the fire.

Acting Premier Bryan Green said he hoped there would be no fatalities.

"I hope from the bottom of my heart that nobody has lost their lives through the fire, we will just have to wait for police to make those assessments," he told reporters.

"It seems, obviously, the community of Dunalley has been most affected ... as soon as we can, we will be there to make sure we reassure those people that we will rebuild this community.

"It is an important part of Tasmania and there is no reason why we can't bring Dunalley back to what it was and ensure people can get on and live the happy, healthy lifestyle the whole area was famous for."

Mr Green said Tasmania had learnt lessons about how to alert its residents from the royal commission into the Black Saturday bushfires in Victoria.

"Even though there have been some reports of missing people still, the way the whole effort has been geared around saving lives has been extremely successful in that it has ensured that people have been alerted and are aware of the decision making responsibilities they have," he said.

Mr Green warned the threat was not over and urged people to remain vigilant.