This valley is carved into the mountains on the southern side of the Dyrafjordur Bay.  Its river, Haukadalsa spills into the sea at Haukadalsbot.  During the Saga Period Gisli Sursson of the Gisla-Saga occupied the farm Holl in the valley.  He was exiled for killing his brother in law, Thorgrimur Thorsteinsson, and was later killed near the farm Botn on the Geirthjofsfjord Bay.  Many topographic names in the valley remind of the Saga and some have been examined.  Two ruins of farms were discovered and some evidence points to the fact, that one of them was the farm of the chieftain Thorgrimur, who Gisli killed.

The Saga coincides with many of those names and description of landscapes in the valley.  On the cove Haukadalsbot was an authorized and a busy trading post from 1892 until the beginning of the 20^th century.  Its fishing outfits triggered the development of a hamlet where a primary school and a cultural community centre were built.  In 1899, British fishermen were caught fishing within the 3 miles’ limit in the bay and were approached the county sheriff, who ordered them to sail to the nearest harbour.  The fishermen prevented the sheriff from boarding and in doing that, they managed to drown three of his crew, when their small boat overturned.
Thingeyri