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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