The Nauthólsvík geothermal beach was opened in 2001 and now attracts over half a million visitors every year. It takes its name from the Nauthóll farmhouse, built in 1850 and burned around the turn of the 20th century during a typhoid fever epidemic.
During the Second World War the area was used as a landing point for amphibious planes and in the following decades it became relatively popular among the residents of the city as a summer destination. This was particularly thanks to a warm flow that fell in the bay of Fossvogur. In 1985, however, the stream was shut down by the government to be a health hazard.
Although sea temperatures around Iceland remain cold throughout the year, using the wastewater from the hot water tanks at the top of Öskjuhlíð, the lagoon warms up to 15-19 ° C.