4. Blönduós

Blönduós is a small town you pass on your way to the north of the country. It stands by the salmon river 'Blanda' and the name 'Blönduós' means 'the place where Blanda enters the sea'. If you stop by the camping place you can pass a bridge over the river to a small island in the river called 'Hrútey', where it is nice running around for the kids. It is also nice just walking around. More pictures from Blönduós can be found here.
You can also check this website to find more information about the North West part of the country.