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Although usually confused with the many hot springs and thermal pools in Iceland, the Blue Lagoon is actually not a natural phenomenon. The Lagoon is instead manmade, and heated by the geothermal power plant just adjacent to the water. Runoff from this plant, which creates energy from the volcanic activity in the area, is directed into the lagoon, and this is what makes the water warm.
With this being said, the pool is still clean and very safe to swim in -- in fact, many firmly believe that the mud and water in the pool is good for your skin. This is because the water is rich in vitamins, minerals, and algae.
The combination fresh and seawater means the Lagoon has a high content of silica within it, which protects your skin. The silica also has an antibacterial effect. In fact, there is even some medical tourism to the Lagoon amongst those with arthritis and chronic pain, who say the water helps their symptoms.
In order to keep this water clean, however, every visitor is required to rinse off before entering the lagoon.
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