The village Grundarfjordur is situated on an exceptionally beautiful bay. The bay is nearly encircled by impressive and graceful mountains, which offer spectacular variations. French fishermen were granted a base in Grundarfjordur from 1800-1860 and they built a hospital and a church there during that period. Fishing and fish processing is the main occupation, commerce is important, and the tourist trade increases steadily and the village offers accommodations and caters to most of the tourists’ needs. Whale watching cruises and deep sea angling are popular and good trout fishing is in nearby lakes. Grundarfjordur was a trading post throughout the centuries and ruins of the old trading houses can still been seen.
The distance from Reykjavik is 187 km. by the Whale Bay tunnel.