The village Ólafsfjörður is more or less a fishing village today.  Like many towns and villages around the coastline in Iceland, the community came into existence at the end of the 19th century and developed mainly in the first half of the 20th century.  Like its sister town,

The village of Ólafsfjörður is placed in a small fjord with steep mountains

Geographically the town of Siglufjörður is an isolated place.  It is a narrow fjord surrounded by steep mountains.

At Siglufjörður town there are still signs from the old docks visable in the town center