During the Krafla eruption of 1727, the Leirhnjúkur crater, 11km northeast of Reykjahlíð, kicked off a two-year period of volcanic activity, sending streams of lava along old glacial moraines towards the lakeshore. On 27 August 1729 the flow ploughed through the village, destroying farms and buildings, but amazingly the wooden church was spared (some would say miraculously) when the flow parted, missing the church by only metres. It was rebuilt on its original foundation in 1876, then again in 1962.
