The settlement of Sauðárkrókur is a town on the Skagafjörður (a deep fjord and associated valley) in northern Iceland. It is the seat of both the Sveitarfélagið Skagafjörður ('Municipality of Skagafjörður') and the Northwestern Region.

Sauðárkrókur is the largest town in Northwest Iceland and the second-largest town on the north coast of Iceland, with a population of approximately 2,612.

It is the centre for commerce and services in the district, and an important link in Iceland's food production. The population of Sauðárkrókur has grown steadily in recent years, and its economy is relatively diverse.

The economy of the town is underpinned by industries such as fisheries, dairy production, light industry and broad-based services such as computer and engineering operations, financials, consulting, design and printing. The natural hot pool located 15 km (9.3 miles) north of Sauðárkrókur is mentioned in the 'Grettis' saga, (a story that details the life of Grettir Ásmundarson, a legendary bellicose Icelandic outlaw).

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