Laugarvatn is a small settlement on the shore of a lake of the same name, and the name tells the story: laug means hot spring and vatn means water. The lake is fed partly by geothermal springs, so the shore is warm in places, and steam rises from the ground around the edge. The village itself is modest, a school, a few guesthouses, a café or two and a spa where visitors sit in steam rooms and warm pools beside the lake, but its position midway between the Geysir area and Þingvellir makes it one of the natural stopping points on the Golden Circle.
The local speciality is rye bread baked in the ground. Bakers bury pots of dough in the hot sand by the lake and leave them for a day, and the bread comes out dark, dense and slightly sweet. It is served with butter and sometimes with smoked trout, and you can taste it in the café and at demonstrations by the shore. It is a simple, odd and delicious example of how Icelanders use the heat under their feet, and it is a good reason to stop for food.
The riding to Laugarvatn is easy and scenic. Route 37 and the roads around it run through lava fields covered with moss, over low ridges and past farms, with the shape of the Hekla volcano visible to the south on clear days. The surface is paved and generally good, with gravel on side roads. The weather is changeable, and a sunny start can turn to rain by midday, so carry waterproof gear. Wind off the lake can be bracing, and in summer the evening light is long and golden, with a pale sky that never quite darkens.
To the west lies Þingvellir, where the Icelandic parliament, the Althing, first met in 930, making it one of the oldest parliamentary assemblies in the world. The site sits in a rift valley where the North American and Eurasian tectonic plates are pulling apart, and you can walk through the gap between them. It is a UNESCO World Heritage site, and the landscape is as dramatic as the history.
Fuel is available at Laugarvatn, but it is worth checking hours and keeping the tank topped up, because the nearest larger towns, Selfoss and Hveragerði, are over thirty kilometres away. Pumps often take cards only. Bring a swimsuit if you want the spa, and a dry layer for afterwards.