The saga says that in the old days we had a plague here in Iceland and at that time one lady farmer, of the name of Þórunn (thorunn) on the north coast moved with all here workmen and livestock up to Laugafell to avoid the plague. While she was there she had her workmen cut out this pool where the hot water came out of the ground and there she would relax. Today all the drinkingwater comes from here at Laugarfell, just notise that the water is around 40°C.