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Baejarfoss (more accurately Bæjarfoss; pronounced "BYE-yar-foss") is situated right behind the charming town of Ólafsvík. This was a convenient waterfall for us as all we had to do was just walk from the Hotel Ólafsvík towards the back of town where we were able to get fairly close to the falls. We actually started walking to this waterfall at around 9:45pm and spent about 20 minutes to both walk and photograph the falls. However, it still felt like it was like 6pm on a typical Summer's day at home. In fact, even though most of Iceland was beneath the Arctic Circle, technically speaking, we did get midnight sun (I think the sun sank beneath the horizon some time after midnight) so that was something we took advantage of in trying to work off our dinner.
The walk involved a little bit of a scramble past some cattle guards towards a direct view of the falls you see at the top of the page. The rather hidden trailhead was between some 3-story apartment and someone's house just behind a church.
Directions: From Ólafsvík, I believe we walked uphill along Kirkjutun St. Since the falls was always visible behind town, it was essentially our compass, so to speak.
To get to Ólafsvík from Reykjavik, we drove 196km along the Ring Road, Route 54, then Route 574.