Papos was the first trading post of the East Skaftafell District.  It was established in 1861 and in 1897 a permanent post was established at Hofn, where it still is nowadays.  The houses of Papos were used for the first boarding school of the district during the period 1897-99.

They were demolished except one, which was moved to Hofn and now houses the Folk Museum.  Papos was situated on the Papa Cove and the entrance to the sheltered harbour was only passable by small vessels.  Just south of the former trading post are ancient ruins, which might be remains from the Irish hermits who stayed in the country to the beginning of the Norse settlement.