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Skagafjörður municipality is a large municipality in northern Iceland. The largest settlements are Sauðárkrókur, Hofsós and Varmahlíð. The municipality is located on the fjord of the same name. Tourism plays a major role, for example with the Glaumbær open-air museum. The area is also famous for its horse breeding. The town of Sauðárkrókur is the largest settlement in the large municipality of Skagafjörður
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