The Icelandic River, earlier known as the White Mud, serves as a drainage channel for Bifrost Municipality, and empties into Lake Winnipeg two miles from this location. The natural harbour provided by the river allowed large lake-going vessels to carry passengers, supplies and news from the outside world to the Icelandic settlements here. In winter long lines of horse drawn freight sleighs followed the river from the frozen lake.
The first Icelandic families arrived in summer, 1876, all from Eyjalfordur region of Iceland. These families established homes around the Hudson's Bay Post, at a site call Modruvellir.
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