The next bay east of Höfn -- Lónsvík, or "Lagoon Bay" -- is dominated by a large lagoon (Lón), fed by the Jökulsá í Lóni (Glacial River of the Lagoon). The mountainous interior region that feeds the Lón is called Lónsöræfi, or "Lagoon Wilderness." This striking and varied landscape, now a 320 sq. km (124 sq. miles) private nature reserve, is easily one of Iceland's best hiking territories.
The best parts of Lónsöræfi are not developed. Glacial streams wind down steep valleys of subtle mineral spectra; yellow rhyolite rocks gleam from streambeds; and reindeer herds are occasionally seen grazing. Only one primitive road leads partly in, and accommodation is limited to basic mountain huts.