Reiðhjalli is situated in Syðridalur in Bolungarvík. From the end of the road in the bottom of the valley, there is a slightly worse road that climbs up the hill from the Hydro Powerplant. If the road is hiked it leads you to the Reiðhjalli reservoir. The view from the area is stunning. As an addition to the hike you can take a sneak peak off the cliffs down to Súgandafjörður or even hike down Hnífsdalur valley.