Bíldudalur is a small village located by the fjord Arnarfjörður in the Westfjords. It was Ólafur Thorlacius who started commerce and fishing in 1790 and became the first Icelander to sell saltfish directly to Spain. Later Bíldudals fish became well known product as the best on the market. The village started to develop fast around 1900 and today the main industries are sea mineral processing and fish farming, but tourism has been increasing fast lately.
There is a church and a health center in the village and just outside the town there is a outdoor swimming pool in the middle of nowhere. The pool is situated in Reykjafjörður, just follow the road towards Ísafjörður from Bíldudalur.
Music and culture is important for the people of Bíldudalur and they host an annual folk music festival and an interesting exhibition of Icelandic music collection from Jón Kr. Ólafsson called the Melodies of the Past can be found in the village. Another interesting thing to do for the whole family is to check out the Icelandic Sea Monster Museum in Bíldudalur.