The district is by the eastern side of Húnaflói bay and reaches from the river Gljúfurá in the west, to the middle of the Skagi peninsula in the east and to the glacier Hofsjökull in the south.

Highway No. 1 lies through the district. The road across Kjölur is open for all cars in summer and goes across the interior from the valley Blöndudalur to the south of Iceland.

When driving around Skagi one passes the cliff Króksbjarg, which is made of hexagonal basalt and is very rich in bird life. Further to the north there is Kálfshamarsvík, characterized by spectacular hexagonal basalt.

Lowland stretches inland from the sea. A few valleys take over further to the south. The biggest ones are Vatnsdalur, furthest to the west, then Svínadalur, Langidalur, and Blöndudalur to the south. South of these valleys there are extensive moors with many good fishing lakes. The district also boasts renowned salmon and trout rivers like Vatnsdalsá, Laxá á Ásum, Blanda and Svartá.

Hot springs can be found at Reykir, and Hveravellir. The river Blanda has been harnessed with a 54 km2 reservoir in the moors. The machinery for the hydroelectric power plant is housed 300m below the surface of the earth.

There are two towns in the district: Skagaströnd, a fishing village at the eastern side of the bay, lately better known for country music, and Blönduós at the estuary of the Blanda river, a center of commerce and services.

There are many historic sites in the district. Þingeyrar, where the first monastery in Iceland was established in 1133, offers a magnificent view of the area and a beautiful church built of stone, which houses many historic pieces of art. The deserted farm Þórhallastaðir in Vatnsdalur is best known for the legendary Grettir´s wrestling match with the ghost Glámur. In 1830, the last execution in Iceland took place in Vatnsdalshólar. By Highway No.1 by the stone Gullsteinn there is a memorial of Þorvaldur the widely travelled, the first Icelandic Christian missionary.