Skútustaðahreppur (Skútustaðir borough) in the area of Mývatnssveit (Lake Mývatn and surroundings) has around 500 inhabitants, just over 200 of which live in the village of Reykjahlíð.
In earlier days, the people living in the Mývatn area made their living mostly from agriculture and by trout fishing in lake Mývatn. In recent years, however, this scenario has changed dramatically. A diatomite factory (Kísiliðjan) was put into use in the late sixties and was the largest employer in the area for over three decades. The diatomite factory is no longer in operation. There are also many jobs producing electricity at the geothermal power plants in Bjarnarflag and Krafla. The tourist industry has long been steady in Mývatnssveit. There are a handful of hotels, restaurants, camping areas and other enterprises connected with traveling. There is considerable growth in tourism at this time with new ideas being explored constantly.
Thingeyjarsveit Municipality came into existence in June 2002 with the merger of four parishes: Hálshreppur, Ljósavatnshreppur, Bárddaelahreppur and Reykdaelahreppur. In 2008 Thingeyjarsveit and Adaldaelahreppur merged into one Municipality under the name Thingeyjarsveit. The population is about 900, and the area is 6000 km2.
The people are thriving and the economic possibilities diverse, such as in agriculture, education, fish processing, forestry, the tourism industry, food production, etc. The municipality has a compulsory school and preschool: Stórutjarnaskóli and Litlulaugaskóli. It also has the Laugar Upper Secondary School and the Music School in Laugar, in addition to the Music Department at Stórutjarnaskóli. There are camps for schoolchildren in Bárdardalur. Theatre and singing are in full bloom, and sports activities are vigorous. You enter Thingeyjarsveit Municipality on the west side of Víkurskard on the parish boundary of Grýtubakkahreppur, and you then head east to Fnjóskadalur Valley. Fnjóskadalur is about 40 km long, and flowing through it is the Fnjóská River, the longest spring-fed river in Iceland. There are good campsites in the valley. There is a dense summer cottage settlement and a swimming pool at Illugastadir. Many places have forest cover, and the biggest birch forest in Iceland is found there: Vaglaskógur. Flateyjardalur Valley, once populated, is now deserted; it is about 32 km north ofFnjóskadalur at Dalsmynni and reaches to the sea. The last farm, Brettingsstadir, was deserted in 1954. The route into the valley runs just south of Thverá River in Dalsmynni; it is only passable in the summer and then only in jeeps or larger vehicles. The island Flatey á Skjálfanda is about 2.5 km where it is longest and about 2 km where it is widest. People lived on Flatey continuously from the 12th century to 1967. Its population peaked in 1943 at about 120 people. Thingeyjarsveit has since reached from Flatey south to Vatnajökull Glacier.