Reykjavík is the capital of Iceland, its largest city, and the world's most northern national capital (its latitude being 64°08' N, not far from the Arctic Circle). It receives only four hours of daylight per day in the depth of winter, and during the summer the nights are almost as bright as the days.
Reykjavík is located in southwest Iceland at the shores of Faxaflói bay. The Reykjavík area coastline is characterized by peninsulas, coves, straits and islands. The population of Reykjavík in 2005 was 114,800, the combined population of the Capital Region being about 190,000.
The first permanent settlement in Iceland by Nordic people is believed to have been established in Reykjavík by Ingólfur Arnarson around AD 870; this is described in Landnámabók, or the Book of Settlement. Ingólfur Arnarson is said to have decided the location of his settlement using a traditional Viking method; by dumping his high seat pillars, Öndvegissúlur, in the ocean when he saw the coastline and then settled where the pillars came to shore. Steam from hot springs in the region is supposed to have inspired Reykjavík's name, as Reykjavík translates to "Bay of Smokes".