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Iceland is divided into 23 (historical) counties, which are further divided into municipalities. The number of municipalities peaked in the mid-20th century. There were 229 of them in 1950. In 1995 their number had reduced to 170. In the year 2000 the number of municipalities in Iceland was 124 and in 2010 the number was down to 76.
The counties have only historical significance and have no administrative functions anymore.
Cities and municipalities
Iceland has two types of local government, cities and municiplaities. In several respects cities are more independent and have generally a small area. Cities range from small (around 900 inhabitants) to large (Reykjavik with 120.000 inhabitants). Municipalities are generally large and with few inhabitants (50 to a few thousand).