
The surrounding area is part of the Hengill central volcano, and is geothermally active and experiences very frequent (usually minor) earthquakes.

the way to the Gufudalur valley erupts continuously, reaching a height of 10–12 meters. Close to the church is a hot spring called Sandhólshver, formed during the violent South Iceland earthquake of 1896. A fenced-off geothermal area in the town has numerous hot springs and fumaroles.
Hveragerði contains a number of greenhouses and is a hotbed for Icelandic horticulture.
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