At the edge of the central highlands you find this beautiful natural phenomenon and oasis.
The river Rauðá (Red river) cascades into and through the valley, Þjórsá river ran through it before but some years ago a dike was built between the mountains Skeljafell and Sandfell to redirect it.
There are a lot of lava formations that are worth taking a look at. The valley is quite flattened over and pumice aftur the repeated eruptions of Mt. Hekla which is nearby.