There are many villages in Risør such as Akland, Bossvika, Fie, Hødnebø, Krabbesund, Moen, Nipe, Røysland, Sandnes, Sivik, Søndeled, and Stamsø.

Together with its coastline, Risør is known for its tourist attractions such as the wooden boat festival which is staged during the first week of August every year.

It also has a growing reputation as the regional capital of arts and crafts, which culminates in the "Villvin-festival" during the summer holiday.

The relatively more modern Danish language version of eyjar is øer, hence the current spelling of "Risør".

The charge has a tincture of argent which means it is commonly colored white, but if it is made out of metal, then silver is used.

In Letters on Sweden, Norway, and Denmark, Mary Wollstonecraft wrote extensively while visiting Risør in 1783, including the following remarks:[10] Risør played a role in the Napoleonic Wars in 1807–1814, when Denmark–Norway took France's side, and therefore became the enemy of Norway's most important trading-partner: Great Britain.

It was south of Risør, in Lyngør (now in the neighboring Tvedestrand municipality) that several British warships, headed by HMS Dictator of the English navy pursued and sank the last major vessel and the pride of Norway: the frigate HDMS Najaden.

On 1 January 1838, the new formannskapsdistrikt law came into effect, granting each parish and town in Norway the rights to have a self-governing council.

The city was redesigned and rebuilt and today it presents a positive impression of a well kept town with white, wooden houses.

White was chosen because it was an expensive paint and the residents wanted to give an expression of prosperity.

The transition to steamships and the economic damage of World War I, however, destroyed Risør's shipping industry.

On 1 January 1901, an area of the neighboring municipality of Søndeled (population: 658) was transferred to the city, greatly expanding Risør.

[7] Risør is the easternmost coastal municipality in Agder county, located on the peninsula between the mouths of the Søndeledfjorden and Sandnesfjorden, providing ready access to the Skagerrak.

Risør municipality is bordered to the southwest by Tvedestrand, to the northwest by Vegårshei and Gjerstad, and to the northeast by Kragerø in Telemark county.

The Stangholmen Lighthouse sits just offshore, marking a shipping channel leading to the town harbour.

The Norwegian County Road 416 connects the E18 highway with the town centre in the eastern side of the municipality.