Fontana is right by the shores of Laugarvatn lake. Like many areas in Iceland, Laugarvatn and its surroundings sit on top of a geothermal hot spot. This means that the earth beneath is simmering with boiling water, erupting into geysers here and there. This warm water has been used for cooking, bathing, and heating up buildings in Laugarvatn for generations and is the foundation of the area's bathing culture.