Hella stands on the eastern bank of Ytri-Rangá river. Settled in 1927 when a store was opened, the community has grown ever since. Residents provide a variety of general services for the surrounding area. On the west bank of the river, facing Hella, are caves dug into encrusted sand. Other such examples are in the vicinity, for example, at Árbær, Áshverfi and Hellar. Some have indecipherable inscriptions, but one hypothesis is that they are relics from the time of Irish monks over 1,100 years ago.

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