Iceland passed Prohibition laws in 1915, but but lifted the ban on wine and spirits after only a few years. Ironically, the ban on beer remained, as people feared that the low cost of beer would encourage drunkenness. Of course, Icelanders found a way to get drunk off of beer despite the ban; they simply mixed hard liquor with the non-alcoholic beers available at the local supermarkets. In the late 80s Parliament came to its senses and repealed the ban on beer, making it legal again on March 1st, 1989.
Photo credit: Didier Baertschiger via Flickr