Selfoss has been rapidly growing for the last few years, much faster than the national average. Selfoss got its municipal rights in 1978 and is sometimes referred to as the capital of the South.
In 1891 the suspension bridge was built across the most voluminous river in Iceland, Ölfusá and that is when the town of Selfoss started developing. Ölfusá runs through the town, filled with both glacial water and water from the Þingvallarvatn. The bridge over Ölfusá collapsed in 1944 and a new was constructed right away because of its importance.
The people of Selfoss base their livelihood on small industries, commerce, services rendered to the agricultural surroundings and tourism