This geothermal site features the largest mud pool, vibrant steam vents, and bubbling springs, all steeped in local folklore about a mischievous ghost.

Close to Reykjanes Lighthouse is the Gunnuhver area. The area is named after a female ghost named Gunna, who supposedly lies there. She had been causing quite a bit of havoc until a priest set a trap for her, and she fell into the spring. The area is full of mud pools and hot springs. The mud pools form where steam from boiling geothermal reservoir water emanates, condenses, and mixes with surface water. The biggest mud pool in Iceland is now in the Gunnuhver area. It is 20 meters wide across the rim and boils vigorously.