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 131,136 (and 233,034 in the Capital Region), it is the centre of Iceland's cultural, economic, and governmental activity, and is a popular tourist destination.
Reykjavík is believed to be the location of the first permanent settlement in Iceland, which, according to Landnámabók, was established by Ingólfr Arnarson in 874 CE. Until the 18th century, there was no urban development in the city location. The city was officially founded in 1786 as a 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.
According to legend, the first permanent Norse settlement in Iceland was established at Reykjavík by Ingólfr Arnarson around the year AD 870, as described in the Book of Settlement. Ingólfr is said to have decided the location of his settlement using a traditional Norse method: when land was in sight, he cast his high seat pillars overboard and promised to settle where the gods decided to bring them ashore. Two of his slaves then searched the coasts for three years before finding the pillars in the bay which eventually became the site of Reykjavík.
