This town is located on the northernmost tip of the capital peninsula Seltjarnarnes. The boundaries between the it and the capital are not visible any more. It has a few small industries. Just north of the peninsula is a small island with a lighthouse and a breeding area of many bird species. Walking along the coastline of this town on a fine day is delightful. The view in all directions is excellent and the late summer sunset is the most impressive in the world.