The present horticultural and greenhouse town Hveragerdi started developing in 1902, when a carding factory was built by the waterfall Reykjafoss. At that time it was a part of Olfus County. The natural thermal area in the centre of town was harnessed for the heating of greenhouses and dwellings. Nowhere else in the country are there more greenhouses in one spot than in Hveragerdi. Many people living in the capital area make weekend trips to the town to buy flowers, tomatoes, cucumbers and other vegetables.
The farmers have prolonged the growing period with artificial lightning and thus limited the need for import of these products during winter. Many foreign visitors are quite astonished to see the inhabitants walking about taking care of their daily chores with all this boiling hot water under their feet and the earth shaking every now and then. All services for tourists are rendered in the town and many recreational opportunities are on offer. The town also boasts of a very good hotel with a golf course, a health resort and good trout and char rivers in the area. Many renowned artists and authors live in town. Hveragerdi received its municipal rights in 1987.