Reykjavík, << RAY kyuh `veek` >> (pop. 135,714; met. area pop. 239,733), is the capital and largest city of Iceland. It is a seaport on the southwest coast, at the head of Faxaflói (formerly Faxa Bay). The city is Iceland’s trading center and its center of government and education. It has many schools, a university, an observatory, a theater, a national museum, and a national library. Reykjavík—meaning Smoky Bay—is named for the columns of steam rising from hot springs in the area. Water from the hot springs is used to heat buildings and homes. The hot springs are also used to generate electricity.
Norwegian Vikings first settled the Reykjavík area in the A.D. 870’s. Under Norwegian and then Danish rule, the area remained thinly populated for hundreds of years. In the 1700’s, Skúli Magnússon built several workshops in Reykjavík, and more people began to settle in the village. Reykjavík was officially founded in 1786.
Allied troops occupied Iceland during World War II (1939-1945). Thousands of troops were stationed in Reykjavík, and the city prospered. Iceland gained independence from Denmark in 1944, and Reykjavík became the country’s capital.
