Skútustaðahreppur (Skútustaðir borough) in the area of Mývatnssveit (Lake Mývatn and surroundings) has around 500 inhabitants, just over 200 of which live in the village of Reykjahlíð.

In earlier days, the people living in the Mývatn area made their living mostly from agriculture and by trout fishing in lake Mývatn. In recent years, however, this scenario has changed dramatically. A diatomite factory (Kísiliðjan) was put into use in the late sixties and was the largest employer in the area for over three decades. The diatomite factory is no longer in operation. There are also many jobs producing electricity at the geothermal power plants in Bjarnarflag and Krafla. The tourist industry has long been steady in Mývatnssveit. There are a handful of hotels, restaurants, camping areas and other enterprises connected with traveling. There is considerable growth in tourism at this time with new ideas being explored constantly. 

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