Reykjadalur
On road #1, about 40 minutes drive from Reykjavík, sits a small town called Hveragerði. On the other side of the settlement starts a hiking path to Reykjadalur (Smoking valley). After an small hour going up, you find yourself following a warm river. And if you go a bit further up, the water is hot enough to bath in. Although there is quite some space, it might get crowded, especially during the summer. If you want to experience the hot springs in Iceland, this is definitely one of the places to check out!