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Dalabyggð is an agricultural area in the municipality which encompasses, the farm of Hvammur í Dölum where the poet, historian, and politician Snorri Sturluson was born. The main industry in the area is agriculture and sheep farming. There is also a thermal bath, Guðrúnarlaug, in the municipality named after Guðrún Ósvífrsdóttir from the Laxdæla saga.
