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Ólafsfjörður is a town in the northeast of Iceland located on Tröllaskagi, at the mouth of the fjord Eyjafjörður. The town is connected to Eyjafjörður via the 3.5 km one-lane Múli tunnel (the Múlagöng). Fishing is the main industry in the town and several fishing trawlers make their home in the town’s harbor.

Nearby places: Dalvík, Siglufjörður, Akureyri

The town grew up around the herring industry that was in much bloom in the 1940s and 1950s, but the herring are gone now. The municipality of Ólafsfjörður and Siglufjörður has merged to form a municipality called Fjallabyggð, which literally means Mountain Settlement. Ólafsfjörður was connected with a road for the first time in 1940, when the horse riding trail through Lágheiði was improved enabling cars to get over the heath. Before, ships, seaplanes, and horses provided the transport.