Vallholmur (Holmurinn) is the lowland area between rivers Huseyjarkvisl and Heradsvotn. It is mainly an alluvial plain, created by the glacial rivers. Parts have become bogs, grazings and cultivated land. Floods make the now vegetated plain more fertile. The company Vallholmur was founded in 1982 to operate a grass pellet factory, which still stands (2011). Large parts of the estates Langamyri and Krossanes in county Seyluhreppur were drained for the factory grass fields. The main offices were located at farm Lauftun, directly east of hamlet Varmahlid. The fate of such factories all over the country was similar. Their operation was terminated before the end of the 20th century.
Vallalaug or Vallnalaug is to the east of farm Ytra-Vallholt. The area was a parliament site for centuries, eventually for the counties Seyla, Lytingsstadir, and Akrar. The magistrate Skuli Magnusson (1737-1749) probably was the last official to carry out his duties there. The name of the place depicts the hot springs of the area.
There the ancient dynasti Sturlungar reiceived foreboding of their great fate. Then Sturla Sighvatsson said: ”I can expect my death, if my relatives ever manage to overpower me, but I swear to God, that I will show them mercy, if I have the upper hand.”
On May 22nd in 1849, 120-160 people of the district Skagafjordur gathered at Vallalaug before they rode to estate Modruvellir in the Horgardalur valley to demonstrate and show their disapproval of the actions of the governor Grimur Jonsson. The people demanded his resignation. The governor was very sick at the time and could not dress fast enough to receive the visitors, who fastened their protests to the main door and left. He died on June 17th the same year.