This village is situated on the eastern side of the big Oxarfiord Bay. Its existence is based on services rendered to the agricultural surroundings, food production, fishing, fish processing and tourism. It has a guesthouse and a youth hostel and quite a few interesting places to visit. One of them is the beautiful National Park Jokulsargljufur. In 1976 plate tectonics (earthquakes) caused extensive damages to constructions in the village. At the same time a part of the lowland area to the southwest, Kelduhverfi, subsided and a big lake was created. The distance from the capital is 579 km by the Whale Bay tunnel and 99 km from Husavik.