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Guðrún Ósvífursdóttir, the heroine of Laxdæla Saga, was born in 973 AD and brought up at Laugar.
It is said that she used the hot water pool there a lot and also met there her followers Kjartan and Bolli.
There is a geothermal area at Laugar and a naturally heated swimming pool was built there in 1932. The hot water is also used for heating up the buildings at the place.
At about 3 km from Laugar you may find the rocky hill Tungustapi, home of elves.