Dimmelsvik was the administrative centre of Kninnherad municipality in Vestland county, the village has a barrel factory but is a small supplier of gravel, sand, and crushed stone.
The village was the administrative centre of Kninnherad municipality until just after World War II, when the administration was moved to the nearby village of Rosendal. The village has a barrel factory and a clog factory. The company is a large supplier of gravel, sand, and crushed stone. 
