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Neskaupstaour intro. None of the towns near any of the breathtaking fjords along Iceland's east coast have a larger population than Neskaupstaour. The population of this town, also spelled Neskaupstadur, decreased dramatically during the 1990s, but has started to increase with the construction of a new hydroelectric power plant and aluminum smelter. Although the town was first established as a trading post in 1895, it was accessible only by boat until 1949, when a road was constructed across its surrounding mountains. The town has been reachable by dry land all year long since a tunnel was built through one of its mountains in 1977. Today, there are a variety of Neskaupstaour hotels, and one of its best known attractions is its museum of natural history. The most breathtaking natural landmarks here are Nordfjordur Bay and a nearby nature reserve and recreational area which contains a unique rock vault called Easter Cave. Neskaupstaour has been part of a larger municipality called Fjarðabyggð since 1998.