The first part, Faxa, is the genitive of the name Faxi or Faxe, referring to a man on one of the first Norse boat trips to the island.
The capital of the island, Reykjavík, is situated on its southern shore within the minor fjord Kollafjörður.
From Reykjavik it is possible to see the peninsula of Akranes in the northeast and even the Snæfellsjökull at a distance of about 120 km (75 mi).
Faxa Bay has always been a source of nourishment of the people living on its shore.
The island and the remains of the settlement can be visited by taking a ferry from Reykjavík harbour.