Localities of Iceland

[1] For example, four localities (Selfoss, Stokkseyri, Eyrarbakki, and Tjarnabyggð) can all be found in the municipality of Árborg.

In those cases, this does not necessarily mean that they there are no other localities included in that particular municipality.

Even when they are the only locality there, they do not always encompass the span of that municipality's entire land area.

[3] The majority of the functions that are carried out by local governments actually happen at the municipal level.

However, most settlements in Iceland are broken down further into the "locality" level, which are mainly used for information collection and statistical analysis purposes only—essentially, a census division.