Blönduós is a town and municipality in northwest Iceland. It has a population of 881 people. It is located next to Route 1 at the end of the Blanda river. On a hill above the town is a church with striking architecture that is supposed to look like a volcanic crater. Blönduós does not have a good harbour. It is mainly used as dairy service centre for the nearby farm areas. Many people in the city work in agriculture, industry and fishing.