Construction activities at the Fontana wellness center in Laugarvatn, Iceland, have caused a significant decrease in the groundwater levels that supply hot water to the local community. The works, which include the development of a large bathing area and facilities, were impacting the geothermal resource utilized by the Bláskógaveita utility. The reduction in water levels from Laugarvatn's geothermal spring has forced the utility to slow down water flow to the local swimming pool as a preventive measure due to high demands for hot water amidst severe cold weather.

On a recent Friday, it was reported that the groundwater from the old steam spring in Laugarvatn experienced a decline directly linked to the expansion activities at Fontana, which is owned by the Blue Lagoon Company. This situation prompted the utility manager, Benedikt Skúlason, to acknowledge that there were direct consequences affecting the hot water supply in the region. The unexpected construction impact, coupled with increased demand for heating during winter, required immediate adjustments to the local water distribution practices.

The situation highlights the delicate balance between development projects and existing community resources, particularly in regions like Iceland where geothermal energy is pivotal for heating. It raises questions regarding the planning and management of construction activities near critical geothermal sites, underscoring the importance of integrating local environmental considerations into expansion plans.