I don't know if the explanation was true but it was fun and it may be true.
When we got to the Vatnsnes peninsula in north west Iceland the whole town we came through was decorated in colors. Basically we found objects - from rocks to washing machines - that were painted a certain color. We came by red, blue and yellow.
We got to hear that this was a decoration contest in the town. Funny and a little strange, if you ask me.