Laugarbakki, (pop. 48) a village south of the bridge across Mið­fjarðará. It was previously called Langafit, and horse fights were held there, as told in the Saga of Grettir the strong. The first house was built there in 1933. Community centre Ásbyrgi, sport centre, hot tubs, campsite, grocery store, handcraft market, organic greenhouse, Skrúðvangur, and a hotel. At Grettisból is a farmers market in the summer time. Laugarbakki is a geothermal site, which sustains this village and also that of Hvammstangi.