A hamlet started developing on Lake Laugarvatn in 1928, when the first of many schools was built there. The abundant thermal activity also triggered further growth with the construction of summer houses in its proximity. A house was built on top of one of the hot springs down by the lake for a steam bath.  The excellent swimming pool is popular among the inhabitants and the guests.  A constantly expanding forest was planted, and brooks and streams decorate the landscape. Some very popular tourist attractions and historic sites are nearby, The Golden Waterfalls, the Geysir Area and the ancient bishopric Skalholt. The boarding schools are used as summer hotels. Laugarvatn is a popular goal the whole year round. The distance from the capital is about 93 km.

Gullfoss 38 km <Laugarvatn> Minniborgir 17 km, Thingvellir 24 km via Laugarvatnsvellir and Gjabakki.
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