I've seen lots of photos of this building, describing it as the old mill, but no more details than that.
built circa 1840-60, worked till 1917[info] [photo] [photo] [photo] [photo] [photo] [photo] [photo]
From Journal of a Tour in Iceland in the Summer of 1809, Volume 1 by Sir William Jackson Hooker
Hence to the sea, and for a long way upon the shore, extended a long tract of country, at one extremity of which, over a little brook, a water-mill had been erected, which was worked by a horizontal wheel, and served to grind corn for the family. This, if I mistake not, is the only one in the island. Some drains, cut by the Etatsroed in an adjoining morass, had greatly improved the soil, and furnished a more copious supply of water to the mill.
From An Historical and Descriptive Account of Iceland, Greenland, and the Faroe Islands by James Nichols, 1840.
On the western coast north of Reikiavik is Saurboer (...). Akkrefell (...) lies on the north of this firth (...). At its foot is situated Indreholm, where are some fine-woolled Spanish sheep, and a curious water-mill, said to be the only one in Iceland.From Iceland: Or, The Journal of a Residence in that Island, During the Years 1814 and 1815 by Ebenezer Henderson
I was not a little interested to fall in here with a water-mill, of a very simple construction; being driven by a horizontal wheel, the axle of which runs through the mill-stones, and without the aid of any other machinery performs the work.
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