An extensive study of the resistivity structure of the Hengill area in SW Iceland was carried out by the combined use of TEM and MT soundings. Joint inversion of the collected data can correct for static shifts in the MT data, which can be severe due to large near-surface resistivity contrasts. Joint 10 inversion of 148 TEM/MT sounding pairs and a 3D inversion of a 60 sounding subset of the MT data were performed. The 3D inversion was based on full MT impedance tensors previously corrected for static shift. Both inversion approaches gave qualitatively similar results, and revealed a shallow resistivity layer reflecting conductive alteration minerals at temperatures of 100-240 degrees C. They also delineated a deep conductor at 3-10 km depth. The reason for this deep-seated high conductivity is not fully understood. The distribution of the deep conductors correlates with a positive residual Bouguer gravity anomaly, and with transform tectonics inferred from seismicity. One model of the Hengill that is consistent with the well temperature data and the deep conductor that does not attenuate S-waves, is a group of hot, solidified, but still ductile magmatic intrusions that are closely associated with the heat source for the geothermal system. (c) 2010 Elsevier Ltd. All rights reserved.