Grundarfjordur is a small town, situated in the north of the Snaefellsnes peninsula in the west of Iceland. The town had 938 inhabitants in 2004 and 974 inhabitants in 2005. The town is situated in front of an impressive mountain range which has a slightly alpine look. On the sea side, there is a volcanic mountain which is called Kirkjufell and forms a small peninsula. The town received the right to do commerce in 1786. Around 1800, French merchants came to Iceland and lived in Grundarfjordur, where they constructed a church and a hospital of their own. The town has become rich through the fishing industry, and this wealth shows in the style of the original, luxurious houses being built.
The road to nearby Stykkisholmur crosses a big lava field, called Berserkjahraun. This is partially warm, so that even in winter, there isn't snow everywhere. The name of the lava field comes from the Eyrbyggja saga, which tells us that two slaves, actually two Berserkers, were slain here by their master, because one of them had the cheek to love his master's daughter.