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This bay is 3-4 miles (5-6 km) long and about 1 mile wide. It is guarded by mountains on both sides, to the west stands Hestfjall (536 m) and to the east Hvanndalabyrda (624 m).
On May 29, 1947, a DC-3 plane crashed into Mt. Hestfjall and 25 people were killed.
There is no lowland strip along the bay and sometimes the approach from the sea is difficult. There were several farms in the well-vegetated valley, some of which were occupied up to the middle of the 20th century, but have all been abandoned. Close to the sea is a nice fishing lake.
Two mountain roads connected the valley with the trading post and later village Siglufiord in the north and one to the south to Olafsfiord. Avalanches were and still are frequent in the valley and have demanded many lives during the centuries. One of the many rescue huts along the coastline of Iceland is situated in Hedinsfjordur.
In 2003 it was decided to tunnel through the mountains between the towns Olafsfjordur and Siglufjordur, which means that the Hedinsfiord Area is going to be enjoyed by many more people than in the past. In 2006, the tunnelling project was officially started. In 2008 the tunnelling is still being continued, Hedinsfjardar-tunnel was opened for public 2nd of October 2010
Hedinsfjordur is on nat.is North Iceland Saga Trail