Lake Grafarvatn is in Austur-Húnavatnssýsla on the border of Langadalur and Refsborgarsveit. The town Blönduós is only about 5 km from the lake. It contains both brown trout and Arctic char, with decent sized fish, fun to fish with a rod. Just north of Grafarvatn is the pond Ólafstjörn, which can be good fishing when the water level is good. A stream flows from the pond to Réttarvatn and char make their way in between when there is good water in the stream.