Mývatnssveit, or Skútustaðahreppur as the district is also called, is in the county of Suður-Þingeyjarsýsla which is located on the north-east corner of Iceland. It is one of the highest and most extensive districts of the country; around 277 m above sea-level and approximately 4926 km² in size. The inhabitants of the area are currently around 450. The size of the lake, Lake Mývatn, is 36,5 km² and it has an average depth of only around 2,5 m but is deepest around 4m. The shoreline of Lake Mývatn is particularly irregular and it contains around 50 islands and islets. The name of the lake, "Mývatn", comes from the midges originating from the lake.

Skútustaðir is a hamlet on the south side of the lake which started as only a farm and a church. As time went on, a community hall, a swimming pool, a school, which has now been turned into a hotel, a shop, two hotels and several family houses were added. Skútustaðir has therefore developed into a small residential and service-centre while the largest community of Mývatnssveit is the village Reykjahlíð located on the north side of the lake. Between these two communities are several farms that are located around the lake, some near the water, others further away.

Characteristic for the landscape of Skútustaðir is a cluster of pseudocraters, called Skútustaðagígar, which are mainly located around a small lake called Stakhólstjörn. The view to the mountains around Skútustaðir is also very beautiful. Bláfjall and Sellandafjall to the south. Vindbelgjarfjall and Hlíðarfjall to the north. Bláfjallsfjallgarður to the east and Kinnarfjöll to the north-west, to only name a few.