Sauðárkrókur is a town in Skagafjörður in northern Iceland and a part of the municipality of Skagafjörður. Sauðárkrókur is the largest town in Northwest Iceland and the second-largest town on the north coast of Iceland, with a population of 2598. It is the centre for commerce and services in the district, and an important link in Iceland's food production. The population of Sauðárkrókur has grown steadily in recent years, and its economy is relatively diverse. Economic mainstays are fisheries, dairy production, light industry and broad-based services such as computer and engineering operations, financials, consulting, design and printing. The natural hot pool located 15 km (10 miles) north of Sauðárkrókur is mentioned in the Grettis saga.