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.