Reykjavík is the capital and largest city of Iceland. It is located in southwestern Iceland, on the southern shore of Faxa Bay. Its latitude is 64°08' N, making it the world's northernmost capital of a sovereign state. With a population of around 123,300, it is the heart of Iceland's cultural, economic and governmental activity, and is a popular tourist destination.
Reykjavík is believed to be the location of the first permanent settlement in Iceland, which, according to Ingólfr Arnarson, was established in AD 874. Until the 19th century, there was no urban development in the city location. The city was founded in 1786 as an official trading town and grew steadily over the following decades, as it transformed into a regional and later national centre of commerce, population, and governmental activities. It is among the cleanest, greenest, and safest cities in the world.