These are two historic villages on the south coast. In the past Eyrarbakki was an important trading post and there were many fishing outfits located along the coastline, but the constant beating of the brakers and bad harbour conditions prevented such operations nowadays. The fish processing factories of the villages received fish for processing from fishing vessels, which unloaded their catch in the harbour of the town Thorlakshofn further to the west. A factory in Eyrarbakki manufactured teflon kitchen utensils from aluminium and exported most of the production. Tourism is become an increasingly important trade. The visitors have the feeling that they have stepped into the past, when they walk about between the old and well maintained houses. The estuary of river Olfusa is very popular among the anglers looking for sea trout and char. Close to the two villages is the largest prison for male inmates in the country.
The distance from the capital is about 70 km.