Laugar is a school centre in Valley Reykjadalur, founded in 1924. A domestic science school started in 1928. Nowadays the school activities concentrate on a business college education.  During summer the school buildings are used as a hotel.

The geothermal activity on the property is, to say the least, very yielding, and the natural hot water is used for house heating and a swimming pool in the cellar of the main building. The landscape around Laugar dates back to the retreating glaciation of the Ice age with hillocks (morains) and ponds on which several species of ducks can be spotted.

The river running through the valley has its catchment area on the so-called Myvatnsheidi moorland and is also fed by the discharge of Lake Masvatn.