The land around the farm and the spit of land Ospakseyri are within the settlement of Thorbjorn bitra.  Its name is derived from a later farmer, Ospakur, who lived there during the Saga Period.  It has been a church site from Catholic times and the present church was built in 1939.  The harbour is certified, but no houses are directly on it.  The local youth association built a small community centre in 1927 and the county’s assembly place was on the spit of land during the centuries.  Up to the beginning of the 20^th century, small boats unloaded freight vessels for those who had ordered their merchandise and in 1912 the first houses were built on the spit and its role as a trading post was confirmed.  The private enterprise continued until 1936, but in 1929 the co-operative society of the Hruta Bay started its trading.

Eventually it took the private trading over in 1936 and continued until 1942, when the inhabitants of the county decided to establish their own co-operative society.  Nowadays its small shop is only open once a week.

The spit was originally created by a large landslide and in 1943, shortly before Christmas, one such destroyed the farmers barn and sheep shed without killing the sheep, which fortunately were just being brought back home from the winter pastures.  The farmer and the Co-operative Society suffered heavy losses.  A tanning house, a warehouse and an open boat were totally destroyed.