Reykjavík City operates the Geothermal beach in Nauthólsvík and also the sailing club Siglunes which resides there. The Geothermal beach was opened in the summer of 2000 and has become immensely popular with sea swimmers all year round. Families flock there during the summer.

The facilities at the Geothermal Beach are run by the sport and leisure department (ÍTR) of the City. They include changing rooms, showers, hot tubs, steam bath and a kiosk that sells refreshments.

The sea in the bay is clean and is monitored closely by Reykjavík Health Inspection

In the most preferable circumstances the seawater in the lagoon is around 15°-19°C and the hot tubs are around 30°-39°C hot. The hot geothermal water comes from the hot water tanks, that are underneath the dome Perlan on top of Öskjuhlíð hill, and has been used previously to heat up homes in Reykjavík.

The Geothermal Beach is located at Nauthólsvegur.