The fjord is located next to some of Bergen's most important industrial areas, and has played a significant part in the city's development and industrialisation.

The fjord experiences strong currents and has numerous small islets, rendering boat passage dangerous.

The fjord's northeastern side belonged to the city, however, and scattered habitations appeared there at the end of the 17th century, later becoming the neighbourhoods of Møhlenpris and Nøstet.

The original Puddefjorden was both longer and broader than it is today, but after extensive industrialisation of the nearby areas in the 19th century, the fjord's form was altered.

There has never been a thorough record of the poisons released into Puddefjorden, and both smaller businesses and locals have used Store Lungegårdsvann as a disposal area.