Seydisfjordur is a fishing and tourist town.  It received its municipal rights in 1895. One of the biggest fish meal factories of  the country is operated there. A few Norwegians settled on Reydarfjordur in the latter part of the 19th century and built many of the still standing and beautiful Norwegian/Swiss houses. They lend the town the atmosphere of the best preserved old town centre dating back to the turn of the 19th century.