Municipalities constitute the second and local tier of government in Iceland's two-level administrative system. The country is divided into 69 municipalities that serve as the primary units of local governance, responsible for delivering essential public services to their communities. These municipalities handle matters such as primary education, social services, local planning and zoning, waste management, water supply, and municipal infrastructure maintenance. Each municipality operates with an elected council and mayor, possessing the authority to levy local taxes and make decisions on issues affecting their jurisdiction. The size and population of Icelandic municipalities vary considerably, from the capital Reykjavík with over 130,000 residents to small rural municipalities with just a few hundred inhabitants.