This town started developing before the middle of the 20th century, when most of the rivers in the southwestern lowlands had been bridged. It is situated on the banks of one of the best salmon rivers of the country and the inhabitants base their livelihood on services rendered to the agricultural surroundings, commerce, industry and tourism. Just southeast of the town is a race course, where horse shows are held regularly and every summer in July a very popular family festival takes place there.
The town offers a good hotel and cottages on the river banks, restaurants and all kinds of recreational opportunities, such as sightseeing tours, horse rentals, dog sledge tours and fishing. East of town is an airfield, where The Gliders' Association holds its competitions.The Bus Company Austurleid-Kynnisferdir hf. serves this town and connects it with the capital in the west, and Egilsstadir in the East.