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The name Hella is derived from a series of caves near the town that are said to have housed Irish monks at the time of Icelandic settlement. Today, it is a small agricultural community located on the banks of the Ytri-Rangá river with views towards the volcano of Mount Hekla. The area is popular for hiking in summer and a good base from which to explore southern Iceland. Hella has also hosted the Landsmót, the largest Icelandic horse show, held annually at rotating locations since 1950.

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