Thingeyri is the oldest trading post of the Westfjords. Fishing and fish processing are the main bases of livelihood. Tourism grows more important by the year, and one of Iceland’s oldest houses, a warehouse dating back to the 18th century, is at Thingeyri. Spectacular nature surrounds Thingeyri, the Western Fiord’s highest mountain, Kaldbakur, and many other beautiful mountains and valleys. It is popular to drive to the top of Mt Sandafell and enjoy the excellent view on a fine day.
The Dyrafjordur Bay is about 22 miles (37 km) long and 5,5 miles (9 km) wide at the mouth. There the almost precipitous slopes drop directly into the sea. The mountains are not high, between 1650 and 2300 feet (500-700m). The landscapes are impressive.
One of the most interesting Sagas, The Gisla Saga, has its main stages of events in this area. The name of the bay is derived from the name of the first settler, Dyri, according to The Book of Settlements.
One of the valleys of the bay area, Haukadalur, represents one of the main scenes of the Gisla saga, where Gisli lived at the farm Holl.