Skútustaðahreppur (Skútustaðir borough) in the area of Mývatnssveit (Lake Mývatn and surroundings) has around 450 inhabitants, just over 200 of which live in the village of Reykjahlíð.

In earlier days, the people living in the Mývatn area made their living mostly from agriculture and by trout fishing in lake Mývatn. In recent years, however, this scenario has changed dramatically. A diatomite factory (Kísiliðjan) was put into use in the late sixties and was the largest employer in the area for over three decades. The diatomite factory is no longer in operation. There are also many jobs producing electricity at the geothermal power plants in Bjarnarflag and Krafla. The tourist industry has long been steady in Mývatnssveit. There are a handful of hotels, restaurants, camping areas and other enterprises connected with traveling. There is considerable growth in tourism at this time with new ideas being explored constantly.

Plans are afoot for building terrestrial baths in Mývatnssveit, upholding in a new way what has been a tradition in the region for as long as anyone can remember.

Mývatn is the fourth largest lake in Iceland, covering 36.5 square kilometers, or approximately 14 square miles. It is situated at 277 meters (908 feet) above sea level, very indented and with more than 40 small islands. Mývatn is shallow, with a maximum depth of only about 5 meters. The Mývatn area is home to more species of ducks than any other place on earth, with a very diverse bird life in general. Mývatn’s natural beauty is unparalleled. A large stream of travelers visit Mývatn in the summer, but many believe the lake and its surroundings to be no less impressive in the wintertime. A few places around Mývatn have a particular attraction for travelers, such as the strange formations of Dimmuborgir, the pseudo-craters around Skútustaðir, the hot springs east of Námaskarð, Höfði, Hverfjall, Leirhnjúkur/Krafla, Grjótagjá and others.

Laxá River, one of the most bountiful and sought after fishing rivers of the country, runs from Mývatn. The stream Grænilækur, from Lake Grænavatn, is Mývatn’s only source of surface water, the majority of Mývatn’s water coming from underground sources

Mývatn derives its name from the often annoying gnat, which is divided into two kinds, of which one has a habit of biting people. These two variations comprise a large number of species, however. The ecological picture would undoubtedly be vastly different if there were no gnats, as they provide a large part of the diet of various birds as well as trout.

Although Mývatn is situated in Iceland’s remote highlands, the area has been well populated since soon after the start of human habitation in Iceland in the ninth century, the ampleness of food drawn from the lake doubtless a decisive factor.