The Bay of Onundur (the settlers name) is about 12 miles (20 km) long and 4 miles (6 km) wide at the mouth. Steep and high mountains frame it with sharp edges and pyramid shaped peaks. At the end of the bay is a relatively large lowland area and some of the short valleys are inhabited.

The settler, Onundur, was the bastard son of king Harald fair-hair of Norway. One of the peculiarities of the area on the bay is the four farms bearing the same name, Kirkjubol (Church Farm). The village on a spit of land on the northern side of the bay is called Flateyri.