Once a bustling village Djúpavík is now a part of Arneshreppur the least populous municipality in Iceland, with only 53 inhabitants. Its history dates back to 1917 when a herring factory was established. At the time that the factory was operating it was one of the largest concrete house in Iceland. The factory now serves as an exhibition building and the old herring factory is a popular tourist attraction in the area.

In 2016 the village came alive again when over 350 people were staying in the village while filming the American superhero film Justice League.

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