The thermal area at Hveravellir is among the largest in the Thingeyjar District. It boasts of three main hot springs. The most active of them is Yztihver, which has erupted up to 25 m. The total capacity of the area is estimated 70 - 80 litres/sec.

The cultivation of potatoes near the hot springs started in 1878. In 1904, the people living in the vicinity founded a horticultural society. A part of the thermal area was purchased and later a third of the Reykir property and the new farm Hveravellir was built.

Greenhouse cultivation has been practiced there since 1933. Within the boundaries of the farm a swimming pool and a cultural community centre were built and hot water was pipelined from there to the town Husavik in 1970.