Grundarfjörður is a town in the north of the Snæfellsnes peninsula in the west of Iceland. It is situated between a mountain range and the sea. The nearby mountain Kirkjufell forms a small peninsula. The town received the right to do commerce in 1786. Around 1800, French merchants came to Iceland and lived in Grundarfjörður, where they constructed a church and a hospital of their own. The town became wealthy through the fishing industry, and this wealth shows in the style of the original, luxurious houses being built.