There were several districts in the interior of Lýtingsstaðahreppur:[4] The area by the Héraðsvötn—across from Úlfsstaðir, Kúskerpi, and Uppsalir in Blönduhlíð—is called Dalspláss.

Agriculture is the primary industry in the area, but many people also work in the service sector.

A small urban area has formed at two places within the old hreppur, one in Varmalækur in Neðribyggð and another in Steinsstaðir in Tungusveit.

On June 6, 1998, Lýtingsstaðahreppur joined ten other local governments to form Skagafjörður: Skefilsstaðahreppur, Sauðárkrókur, Skarðshreppur, Seyluhreppur, Staðarhreppur, Rípurhreppur, Viðvíkurhreppur, Hólahreppur, Hofshreppur, and Fljótahreppur.

[6] The last Lýtingsstaðahreppur council was elected in the hreppur committee election on May 28, 1994, in which Björn Ófeigsson, Elín Sigurðardóttir, Eyjólfur Pálsson, Indriði Stefánsson, and Rósa Björnsdóttir were voted into office.