Laugar and Reykjadalur: The Hot Spring Valley of North Iceland

Laugar and Reykjadalur: A Valley Shaped by Hot Water

Most travellers pass through Laugar on the Ring Road between Akureyri and Lake Mývatn without a second look. Those who stop find one of the most quietly fascinating corners of North Iceland: a green valley warmed from below, where people have lived off the heat of the earth for centuries. This is also where Aurora Farm Hotel stands, at Stóru-Laugar.

What the Names Mean

Icelandic place names are practical. Reykjadalur means "valley of steam", named for the plumes that once rose from its hot springs on cold mornings. Laugar simply means "hot springs" or "warm pools", and the farms around the village are named for them: Stóru-Laugar, "the big hot springs", and Litlu-Laugar, "the little hot springs".

In a country without forests or coal, naturally hot water was a treasure. It meant warm washing, bathing through the long winters and, in time, heated houses and greenhouses.

Farms, Families and Six Generations

Reykjadalur has been farmed for centuries, and many families can trace their roots here for generations. Chef Völundur Völundarson, who runs Aurora Farm with his wife Thora, is one of them. His ancestor Þorgrímur Pétursson was born at Stóru-Laugar in 1843 and later settled in the next valley by the Laxá river, where he was remembered as a fly-fisherman, poet and wrestler. Our restaurant carries his name.

A School Heated by the Earth

The village of Laugar grew up in the 20th century around a remarkable idea. In the 1920s the youth associations of Þingeyjarsýsla built a school here with volunteer labour, and the Alþýuskóli Þingeyinga, the People's School of Þingeyjarsýsla, opened on the first day of winter, 25 October 1925. The site was chosen for its hot water, which heated the buildings and an indoor swimming pool.

A home economics school followed a few years later, and the two merged in 1988 to form today's Framhaldsskólinn á Laugum. The school celebrated its 100th anniversary in October 2025, and in summer its buildings have long housed travellers too.

Laugar Today

Laugar is the largest village in the municipality of Þingeyjarsveit, with around a hundred residents, a geothermal swimming pool, a shop and a petrol station. The Reykjadalsá river runs through it on its way to Lake Vestmannsvatn and on to the Laxá, one of Iceland's famous salmon and trout rivers.

The location is ideal for exploring the Diamond Circle: Goðafoss is 10 minutes to the west, Lake Mývatn 20 minutes to the east and Húsavík 30 minutes to the north.

Bathing in Reykjadalur's Hot Springs

The hot springs that gave the valley its name still flow at Aurora Farm. Our two natural geothermal hot springs, cold plunge and sauna are reserved for hotel guests, and the water flows through continuously without chemicals. For a public option, the swimming pool in Laugar village is a short walk from the hotel.

Frequently Asked Questions

Is this the same Reykjadalur as the hot river near Hveragerði? No. That Reykjadalur, with its well-known hot river hike, is in South Iceland. Our Reykjadalur is in North Iceland, between Akureyri and Mývatn.

What does Laugar mean? "Hot springs" or "warm pools" in Icelandic.

Where can I stay in Reykjadalur? Aurora Farm Hotel at Stóru-Laugar, with private hot springs and the wood-fired Þorgrímur Restaurant. Book your stay.