According to legend, a little girl threw a slug into the lake way back when after it had grown to frightening proportions. The slug kept growing, and some town magicians chained its head to the floor of the lake to protect the citizens. However, you can still see part of it above the surface of the lake if you are lucky. There's a drawing of "The Lagarfljot Wyrm" on the side of the town supermarket.
Egilsstadir is one of the newest towns in Iceland, established in 1947. It has an airport and hospital, and a couple of thousand people live there. If the day we were there is any indication, it also has fog on some mornings.
By the way, our hotel was a block away from the main road in the town. In the small grass area between the parking lot and the road was a fenced-in pasture where a horse hung out. The animal was well-trained;it would come over and see visitors, probably in the hopes of getting some food.
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