Set at the base of the broad, north-facing Skagafjörður, 25km north of Varmahlíð, SAUÐÁRKRÓKUR is the second-largest town on the northern Icelandic coast, with a population of 2600. It’s a likeable spot, occupying a triangle of suburban streets bordered by fjordside Strandvegur, Hegrabraut and Skagfirðingabraut. Sauðárkrókur’s brightly painted houses and wide open spaces, with views of the bustling harbour on the edge of its centre, lend a pioneering edge to the town, and wandering around the streets is a pleasant enough way to pass an hour or two, popping in at the fascinating fish skin tannery on the way. The main attractions, though, are the boat trips to the nearby island of Drangey and a dip in Grettislaug hot pool, both connected to Iceland’s classic outlaw tale, Grettir’s Saga, and horseriding tours out into the surrounding countryside.
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