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Hveragerdi is situated 45km from Reykjavík, close to the southern coastline. The town sits on an area of geothermal activity with the waters from the hot springs used as heating for the various greenhouses located there. The subsequent horticultural boom has led to the expansion of the town and the opening of a geothermal park during the summer. An earthquake in 2008 struck Hveragerdi, producing a new hot-spring area situated on the hillside above the town. Several very active hot springs can be seen that throw colourful mud and clear water in the air. The town also has a speciality stone and mineral museum, as well as a museum that chronicles people’s experiences during the 2008 earthquake.

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