Sauðárkrókur is the second-largest town in north Iceland, and the largest town in Northwest Iceland, with about 2,500 inhabitants. Sauðárkrókur is the centre for services and commerce for the region and is famous for its food production. The main industry are dairy production and fisheries. The natural hot pool located 15 km (9.3 mi) north of Sauðárkrókur is mentioned in the Grettis saga.