Dalabyggð is an agricultural area in the municipality which encompasses, the farm of Hvammur í Dölum where the poet, historian, and politician Snorri Sturluson was born.

The main industry in the area is agriculture and sheep farming.

There is also a thermal bath, Guðrúnarlaug, in the municipality named after Guðrún Ósvífrsdóttir from the Laxdæla saga.

The area is renowned for stories and people from Dalabyggð, such as: Auður djúpúðga, Leifur Eiríksson, Steinn Steinarr, Árni Magnússon, Eiríkur rauði, Sturla Þórðarson, and Ásmundur Sveinsson.

There are many places in Dalabyggð with a great story, for example: Eiríksstaðir, Guðrúnarlaug, Haukadalur, and Ólafsdalur.