We describe the background for and building of IcePaHC, a one million word parsed historical corpus of Icelandic which has just been finished. This corpus which is completely free and open contains fragments of 60 texts ranging from the late 12 th century to the present. We describe the text selection and text collecting process and discuss the quality of the texts and their conversion to modern Icelandic spelling. We explain why we choose to use a phrase structure Penn style annotation scheme and briefly describe the syntactic annotation process. Furthermore, we advocate the importance of an open source policy as regards language resources.