"The hot water has a distinctive smell because..." Iceland Local Custom Tip by marielexoteria
Iceland Local Customs: 180 reviews and 235 photos
...it's taken right from the source (from the insides of Mother Earth) and it's not processed. Since Iceland is one big geothermal spot, the hot water has sulfur in it - which is good for treating skin diseases. You'll also feel this smell if you visit or pass by geothermal spots.
Cold (tap) water, however, is processed, smell free and safe to drink.
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