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Bakkafjörður is a small fishing village which lies  at the end of the fjord (Borgarfjordur). Most of its inhabitants live on inshore fishing and small scale farming.

Surrounding the 5 km long and 4 km wide bay are some of Icelands oldest mountains. It also has the second largest rhyolite and basalt area in Iceland. Borgarfjörður is known for its unique geological formations, beautiful stones, pebbles and minerals. 

Population: 130