Hveragerði is a town and municipality in the south of Iceland, 45 km east of Reykjavík on Iceland's main ringroad, Route 1. The river Varmá ru…Hveragerði is a town and municipality in the south of Iceland, 45 km east of Reykjavík on Iceland's main ringroad, Route 1. The river Varmá runs through the town. With an area of 9 square kilometers, Hveragerði is the third smallest municipality in Iceland by size.