Deildarvatn is one of the lakes at Ytraháls, between Sveinungsvík and Kollavík. It lies at 110 m above sea level and its estimated area is 0.58 km². From the lake flows the River Deildará, although this is not the well-known salmon river which flows short distance to the west. Both brown trout and Arctic char are in Deildarvatn, usually relatively small fish, but it is still possible to find large and beautiful fish there. There are not many stories of angling in the lake, but net fishing is very productive. The lake is owned by Krossavík and Sveinungsvík.