Laugarvatn, a village that has grown around a number of schools.
This is a geothermal area, and it is said that when Christianity was legalized in the year 1000, the chieftains from the north refused to be baptised in the cold waters of Þingvellir, and were brought to Laugarvatn to be baptised in the warm spring, Vígðalaug (“Consecrated spring”).
The bodies of the last Catholic bishop, Jón Arason, and his sons were washed there after they had been beheaded at Skálholt in 1550, and were later taken to Hólar in Skagafjörður for burial.
Three children were baptised in Vígðalaug at the celebrations in 2000 commemorating the conversion of Iceland.
A natural steambath reopen in June 2011 with sandy beaches by the lake.
At Laugarvatn you will also find a gas station, grocery store, restaurants, hotels and a gallery.
A popular camping area in summer. Beautiful walking routes in the area.