This is where the famous rainbow street is. Seyðisfjörur is a lovely, relaxed town in the east. Some say it's the the heart of culture, heritage and hospitality in East Iceland (well, they say it, but I won't argue with them over it). Seyðisfjörður is a place of singing waterfalls and peculiar characters. It is a welcoming town booming with creativity and rich in history. Inhabited by about 700 people the town acts as one big family, and a friendly one at that.