The Capital territory, sometimes known as the “capital area,” is a territory in southwest Iceland that includes six nearby municipalities and the country’s capital, Reykjavík. Every municipality has an elected council of its own. Local governments in the area work together closely in a number of areas, such as trash management, public transportation, and a combined fire department. Sixty-four percent of Icelandic people live in this area.

Greater Reykjavík (Icelandic: Stór-Reykjavík), which comprises portions of six of the region’s seven municipalities (Kjósarhreppur is entirely rural), is by far the largest urban area in Iceland.