[1] famous people include: Vilhjálmur Einarsson, an Olympic medalist The town is at the bottom of the eponymous fjord, the largest on the east coast of Iceland.

Although the climate is particularly rainy and foggy, on clear summer days it often has the highest temperatures in Iceland.

Due to its strategic location and good harbour conditions, it became the second-largest of the Allied bases in Iceland during World War II.

It was built between 2004 and 2007 by the contractor Bechtel, requiring thousands of workers from various countries, most notably from Poland.

At one point, the town had the highest concentration of foreign residents of any community in the country, and the number of workers reached as high as 2,800.