Laugarvatn: Golden Circle's Best Kept Secret

Nestled between Lake Laugarvatn and the rolling hills of southern Iceland, the village of Laugarvatn represents everything the Golden Circle should be—but without the crowds. While thousands of tourists thunder past daily en route to Gullfoss and Geysir, they're missing one of Iceland's most charming settlements, where natural hot springs have sustained a community for over a millennium.

Located just 77 kilometres from Reykjavík along Route 37, Laugarvatn sits at the intersection of Iceland's geological and cultural heritage. The name literally translates to "hot spring lake," a reference that becomes immediately apparent when you witness steam rising from the black volcanic sand beaches that fringe the 2.14-square-kilometre lake.

A Landscape Forged by Fire and Ice

Laugarvatn's dramatic setting owes its existence to the Mid-Atlantic Ridge, the tectonic boundary that runs directly through Iceland. The lake itself formed approximately 10,000 years ago during the last Ice Age, carved out by glacial activity and subsequently filled by geothermal springs bubbling up from deep within the earth's crust.

The village's most distinctive feature is its geothermal beach, where natural hot springs emerge through the black sand at temperatures reaching 100°C. This phenomenon occurs because Laugarvatn sits atop an active geothermal field, part of the Haukadalur geothermal area that also feeds the famous Geysir hot springs 23 kilometres to the northeast.

The surrounding landscape showcases Iceland's volcanic heritage beautifully. To the east rises Laugarfjall (516 metres), a classic shield volcano that last erupted during the Pleistocene epoch. The mountain's gentle slopes are carpeted with Arctic birch and willow, creating a rare woodland environment that once covered much of Iceland before human settlement.

A Settlement Born from Sacred Waters

Archaeological evidence suggests that Laugarvatn has been continuously inhabited since Iceland's settlement period in the 9th century. The Landnámabók (Book of Settlements) records that the area was first claimed by Ingólfur Arnarson's foster brother, Hjörleifur, though he was killed before establishing a permanent homestead.

The hot springs held particular significance in medieval Iceland. Before Christianity took hold, the springs were considered sacred by Norse settlers who believed they possessed healing properties. This reverence continued after Iceland's conversion to Christianity in 1000 AD, when the springs became a popular baptismal site for bishops travelling from the Skálholt diocese, located just 18 kilometres south.

During the 18th and 19th centuries, Laugarvatn evolved into Iceland's premier spa destination. Wealthy Reykjavík residents would undertake the arduous two-day journey on horseback to "take the waters," believing in their curative properties for everything from rheumatism to skin conditions. This tradition established Laugarvatn as Iceland's first wellness tourism destination, a role it maintains today.

Modern Laugarvatn: Where Tradition Meets Innovation

Today's Laugarvatn, home to approximately 200 permanent residents, has successfully balanced preservation of its natural heritage with sustainable tourism development. The village serves as a crucial stop for travellers seeking an authentic Icelandic experience away from the Golden Circle's main thoroughfares.

Fontana Spa: Iceland's Original Geothermal Experience

The crown jewel of modern Laugarvatn is Fontana Spa, built directly over the geothermal springs that have drawn visitors for centuries. Opened in 2011, Fontana features three outdoor mineral baths maintained at temperatures between 38°C and 41°C, fed by natural hot springs emerging at 80°C.

The facility's design philosophy centres on minimal environmental impact. The buildings use sustainable Icelandic timber and turf roofing, while the pools require no artificial heating—they're maintained entirely by geothermal energy. Entry costs 6,900 ISK (approximately €47/£41 USD) for adults, with children under 13 entering free with paying adults.

Fontana's unique selling point is its authentic geothermal bakery experience. Visitors can witness traditional hverabrauð (geothermal rye bread) being unearthed from the hot sand after 24 hours of underground baking at constant 100°C temperatures. This ancient technique, still used by local families, produces a distinctively sweet, dense bread that's become synonymous with Icelandic cuisine.

Lake Activities and Natural Wonders

Lake Laugarvatn itself offers year-round activities despite its modest size. During summer months (June through September), the lake's surface temperature reaches 20°C, making it one of Iceland's few naturally swimmable lakes. The contrast between the cool lake water and adjacent hot springs creates a unique bathing experience that locals call "the Icelandic sauna."

Winter transforms the lake into an entirely different environment. From December through March, the lake typically freezes solid enough to support ice fishing, though visitors should always verify ice conditions with local authorities. The surrounding landscape becomes a wonderland of ice formations and Northern Lights viewing opportunities, with minimal light pollution enhancing visibility.

Getting There and Getting Around

Reaching Laugarvatn requires no special vehicles or hiking expertise. From Reykjavík, take Route 1 (Ring Road) eastbound for 64 kilometres to the Selfoss junction, then follow Route 37 north for 13 kilometres. The journey typically takes 75 minutes in normal conditions.

Public transportation is limited but available. Reykjavík Excursions operates daily buses during summer months (June through August) connecting Laugarvatn with Reykjavík and other Golden Circle destinations. Adult tickets cost 2,800 ISK (approximately €19/£16) one-way.

For those incorporating Laugarvatn into a Golden Circle tour, it sits perfectly positioned between Þingvellir National Park (35 kilometres southwest) and Geysir (23 kilometres northeast). This location makes it an ideal lunch stop or overnight base for exploring the region's attractions without dealing with crowds.

When to Visit

Laugarvatn offers distinct experiences across seasons, making timing crucial for different interests. Summer visitors (June through September) enjoy the warmest weather, with average temperatures of 12°C and up to 19 hours of daylight. This period offers the best conditions for lake swimming and hiking in the surrounding hills.

Winter visits (November through March) provide opportunities for Northern Lights viewing, ice formations, and the atmospheric contrast between snowy landscapes and steaming hot springs. Average winter temperatures hover around -1°C, making hot spring bathing particularly appealing.

The shoulder seasons (April-May and September-October) often provide the best value and fewer crowds, though weather can be unpredictable. These months offer golden hour lighting that photographers particularly prize, especially during October when autumn colours peak.

Practical Information

Accommodation in Laugarvatn centres around the Golden Circle Apartments and several guesthouses charging 15,000-25,000 ISK (€102-170/£86-143) per night for double occupancy. Booking ahead is essential during summer months when availability is extremely limited.

Dining options include the Fontana restaurant, which specialises in locally-sourced ingredients including lake trout and lamb. Main courses range from 3,500-6,800 ISK (€24-46/£20-39). The village shop provides basic supplies, though serious provisioning should be done in Selfoss or Reykjavík.

For those seeking Iceland's authentic geothermal experience without sacrificing comfort or accessibility, Laugarvatn represents the Golden Circle's most rewarding secret—one that deserves to remain on every discerning traveller's itinerary.

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