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Lagarfoss disappointed us because we came here expecting to see something major considering it was well labeled on our map as well as seemingly well signposted. However, all we ended up seeing was a waterfall destroyed by a hydroelectric dam. At least there was a huge glacial lake backed up by the dam creating a very pretty shade of powder blue in the color of the water. But other than that, it was all rocky beyond the dam, which looked like it could've been a wild cascading waterfall.
I'm sure in order to feed energy needs, some compromises with Nature had to be made. And in this case, I guess this waterfall had to go in order to supply megawatts or maybe even gigawatts (I didn't know what the power output of this hydro scheme was).
Directions: If you're interested in coming here, go about 5km north of Egilsstaðir along the Ring Road to the route 925. Then turn right onto Route 925 and take it for a little over 23km before turning left onto Route 944. Follow this for a little over a kilometer to the former site of the falls.