Reykjavík is the capital and largest city of Iceland. It is located in southwestern Iceland, on the southern shore of Faxaflói bay. Its latitude is 64°08' N, making it the world's northernmost capital of a sovereign state. With a population of around 128,793 (and 228,231 in the Capital Region), it is the center of Iceland's cultural, economic and governmental activity, and is a popular tourist destination.

Steam from hot springs in the region is said to have inspired Reykjavík's name, which loosely translates to Smoke Cove (the city is sometimes referred to as Bay of Smoke or Smoky Bay in English language travel guides). In the modern language, as in English, the word for 'smoke' and the word for fog or steamy vapour are not commonly confused, but this is believed to have been the case in the old language. The original name was Reykjarvík (with an additional "r" representing the usual genitive ending of strong nouns) but this had vanished around 1800.

Reykjavík is believed to be the location of the first permanent settlement in Iceland, which, according to Landnámabók, was established by Ingólfr Arnarson in AD 874. Until the 19th century, there was no urban development in the city location. The city was founded in 1785 as an official trading town and grew steadily over the following decades, as it transformed into a regional and later national centre of commerce, population, and governmental activities. It is among the cleanest, greenest, and safest cities in the world.

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