It was in the days of King Harold Fairhair that a man brought his ship to Iceland into Breiðdal, his name being Hallfreðr. Breiðdal is a countryside down below that of Fljótsdalr. On board his ship was his wife and son, who was hight Hrafnkell, who was then fifteen winters old, a hopeful and goodly man.
Hallfreðr set up household. In the course of the winter there died a servant-maid of foreign kin, whose name was Arnthrúðr; hence the name of the place Arnthruðr-staðir. In the spring Hallfreðr moved his house northward over the heath, and set up a home at a place called Geitdalr. One night he dreamt that there came a man to him, and said : “There liest thou, Hallfreðr, and rather unwarily; flit thy house away west across the Lagarfljót, for there all thy good luck awaits thee.” Thereupon he awoke and flitted his belongings down the valley, across Rangá, into the Tongue to a spot, which has since been called Hallfreðr-staðir, and there he dwelt into a good old age.
In breaking up from Geitdalr he had left a goat and a buck behind, and the same day that Hallfreðr left, an earthslip struck the house, and there these two creatures were lost. Hence the name Geitdalr, which this place has borne ever since.