Flókalundur, on the junction between the road up to Arnarfjörður and Ísafjörður, and Rte 62 to the southwestern peninsulas, sits at the head of Vatnsfjörður. The two-house encampment at Flókalundur was named after the Viking explorer Hrafna-Flóki Vilgerðarson, who gave Iceland its name in AD 860.
Today, the most interesting thing in the area is a wonderful natural hot spring and the Vatnsfjörður Nature Reserve, established to protect the area around Lake Vatnsdalsvatn, a nesting site for harlequin ducks and great northern divers (loons). Various hiking trails run around the lake and into the hills beyond. Pick up a hiking brochure at Hótel Flókalundur.