Situated on the Reykjanes peninsula in Iceland, Reykjanesbaer is a municipality. It is composed of three individual entities being the village of Hafnir, and the towns Keflavik and Njarovik. It wasn't until 1995 when the occupants of all three locations decided to merge into one municipality.
With a population of just over 14,000 people, Reykjanesbaer is now the fifth largest municipality in Iceland. The town of Keflavik is the largest of the three entities, and Hafnir which is only 10 kilometres away is the smallest of the group. During the course of the 20th century, the towns of Njarovik and Keflavik had been slowly merging together anyway. It had gotten to the point where the only thing separating Njarovik and Keflavik was a single street. Keflavik and Njarovik was on one site of the street. So the inclusion of Hafnir into the municipality was a no brainer really.
Then in 2006 when the United States closed their NATO base in Kelfavik, a development agency called Kadeco renamed the old base to Asbru. Following this Keilir the local university was formed, and many of the local businesses also moved into Asbru.
Reykjanesbaer has a total of seven sister cities including Brighton in England, Hjorring in Denmark , Kerava in Finland, Kristiansand in Norway, Miovagur in the Faroe Islands, Orlando in the United States and Trollhattan in Sweden.