Lake Laugarvatn is rather a small lake in the valley Laugardalur in the Arnes County. The hamlet on it has developed in connection with the boarding schools and the greenhouse cultivation.

Several hot springs are situated on its shores and on top of one of them a house was built for people to enjoy sweating in the steam inside. Boats and gear for water sports can be rented. The catch consists of lake char and brown trout.

The distance from the capital is about 75 km over the Gjabakki road.