Lake Vatnshlíðarvatn is 280 m above sea level and its area is 0.70 km². A stream flows from lake Arnarvatn into it and the outflow is the river Valadalsá, which becomes Staðará (Sæmundará) after several streams have joined. In Arnarvatn there were once a decent char, but that is no longer the case. In Vatnshlíðarvatn there are small char that take the anglers bait well. There is good access to the lake. The fishing starts when the ice melts and continues until September. As in many places, the best fishing is in the spring.