Reykjavík is the capital and largest city of Iceland. It has a latitude of 64°08' N, making it the world's northernmost capital of a sovereign state. It is located in southwestern Iceland, on the southern shore of Faxa Bay. With a population of around 130,000 (and over 200,000 in the Capital Region), it is the heart of Iceland's cultural, economic and governmental activity.
Reykjavík is believed to be the location of the first permanent settlement in Iceland, which, according to Ingólfur 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 next decades, as it transformed into a regional and later national centre of commerce, population, and governmental activities. It is among the richest, cleanest, greenest, and safest cities in the world.