Faxaflói fäk´säflō˝ē [key] or Faxa Bay, inlet, c.40 mi (60 km) long and c.55 mi (90 km) wide, W Iceland, between the Snaefellsnes and Reykjanes peninsulas. Most of Iceland's population live around the bay; Reykjavík is on the southeast shore. Two narrow arms, Hvalfjörður and Borgarfjörður, extend inland. The inlet is rich in fish.

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