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The town Selfoss started developing in 1891, when a suspension bridge was built across the most voluminous river in Iceland, Olfusa. This bridge collapsed in 1944 and a new one was constructed immediately. The community was strengthened in 1930, when the co-operative shop and the dairy were established. Selfoss, sometimes referred to as the capital of the South, received its municipal rights in 1978 and the inhabitants base their livelihood on services rendered to the agricultural surroundings, small industries, commerce and tourism. The town is an excellent centre for day tours to the many places of interest in the area. Some salmon is caught downriver from the aforementioned bridge. All necessary services for tourists are available in Selfoss. Many people visit the town the whole year round as road no. 1 lies through it. The distance from the capital is 57 km.
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