The Blue Lagoon was formed in 1976 during operation at the nearby geothermal power plant. In the years that followed, people began to bathe in the unique water and apply the silica mud to their skin. Those with psoriasis noticed an incredible improvement in their condition. Over the years, Blue Lagoon has been innovative in harnessing this gift of nature to develop different spa services and products. Today, Blue Lagoon is recognized as one of the wonders of the world.