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Ofaerufoss (more accurately Öfærufoss; pronounced "UEHW-fye-ru-foss") is a gorgeous waterfall that used to have a natural bridge spanning over the top of its lower tier. That bridge collapsed in the 80s I believe due to an earthquake. But even without the bridge, it was still one of the distinctive waterfalls we had seen, and it provided an excellent excuse to experience some of the forbidding Icelandic Interior.
Personally, I would've liked to have hiked close to the waterfall, but the 4wd bus schedule barely allowed us enough time (about an hour) to walk to the falls and just take a few photographs before we had to return. It was a bit rushed for my liking, but perhaps the persistent midges also didn't help matters in terms of having a stress-free experience. At least the walk was mostly flat.
The falls sat in the remote Eldgjá chasm, and it was part of a stop along the way to Landmannalaugur ("LAND-man-nuh-loy-gur") from Kirkjubæjarklaustur. There were a couple of 4wd river crossings involved with this excursion, which was why we opted to take a paid tour instead of risking it with our car hire.
Directions: Since we did Ofaerufoss as an organized tour to Landmannalaugur we only had to park at a designated car park area in Kirkjubæjarklaustur (where we were staying).
If you were to self-drive to the falls, the route would be to take the Ring Road for about 23km to its junction with Route 208. Turn right onto Route 208. After 5km, turn right onto Fjallabak ("FYAT-luh-bak") Road, which gets bumpier the further you go. After about 38km (there's at least one river crossing), there's a turnoff to the right for Eldgjá. Take that road to the car park at the end (there's two more river crossings I believe).
Just to give you an idea of how rough going it can get, Julie and I witnessed a tour bus that got stuck just before making the last river crossing. It actually required a rescue crew with hauling capabilities to pull the bus out of the mud.