The Blue Lagoon geothermal spa is one of the most visited attractions in Iceland. The spa is located in a lava field in Grindavík on the Reykjanes Peninsula, southwestern Iceland. The Blue Lagoon is situated approximately 20 km (12 mi) from the Keflavík International Airport and 39 km (24 mi) from the capital city of Reykjavík, roughly a 21-minute drive from the airport and a 50-minute drive from Reykjavík.

The lagoon is a man-made lagoon which is fed by the water output of the nearby geothermal power plant Svartsengi and is renewed every two days. Superheated water is vented from the ground near a lava flow and used to run turbines that generate electricity. After going through the turbines, the steam and hot water passes through a heat exchanger to provide heat for a municipal water heating system. Then the water is fed into the lagoon for recreational and medicinal users to bathe in.

In 1976, a pool formed at the site from the waste water of the geothermal power plant that had just been built there. In 1981, people started bathing in it after its supposed healing powers were popularized. In 1992, the Blue Lagoon company was established, and the bathing facility was opened for the public.

More Info: en.m.wikipedia.org