Vatnsoyrar is located in the middle of the island of Vįgar.
It is the only village in the Faroe Islands that is not located down
by the sea. Instead it lies by the largest lake of the islands, Leitisvatn (Sųrvįgsvatn).
The British Army used Leitisvatn as airport for seaplanes.
In Vatnsoyrar there is a popular camp school for Young people.
The village was founded in 1921.