Loðmundarfjordur branches from the Seydisfjordur Bay between Mt Alftavikurfjall in the north and Mt Brimnesfjall in the south.  It was and independent county to January 1st 1973, when it merged with county Borgarfjordur East.  During the first part of the 20th century its inhabited area was flourishing.  At the turn of the 19th century the population counted 87.  The number of farm was 10, but around the middle of the 20th century this number started diminishing.  During the period 1940-1965, five farms were abandoned.  The largest farms, Stakkahlid and Saevarendi, remained occupied the longest, the latter until 1973.  Farm Klyppstadur was a church site, where a church, which was built in 1891, still stands after a partial restoration late last century.  A village never developed in this area and the harbour conditions were not improved sufficiently.  Communications were always difficult.  The old routes lie across moorland Hjalmardalsheidi to Seydisfjordur, and across Mt passes Kraekjuskord to Borgarfjordur East.  A track for jeeps was opened across Neshals to Husavik in 1961, and from there across moorland Husavikurheidi to Borgarfjordur East.  This track is seldom passable until the middle of summer.  In the past the inhabitants walked to Fljotsdalsherad through valley Hraundalur.  They asked the road authorities in vain to consider building a road along the coastline to Seydisfjordur.  In 1993, two members of parliament proposed a summer road between Lodmundarfjordur and Seydisfjordur, also in vain.