Ingólfur Arnarson arrived in Icelandic with his wife and their entire household from Norway in 874. To let the gods decide where he should settle on the island, he threw two large wooden pillars overboard at the Icelandic coast. He decided to settle where ever they would flow ashore. He settled in a small bay first, which was named Ingólfshöfði, but once the pillars came ashore they moved to where they were found. They were found in an area with lots of steam, and Ingólfur named the bay "Steam bay" or Reykjavík.

Original design by Icelandic artist and owner of the Saga Museum, Ernst Backman.