Established in 1945 and since 1973 all local authorities in the country are members of the association.

Under the Local Government Act, the Association of Local Authorities in Iceland is the joint representative of the country′s local authorities. It defends their interests in dealings with the government and other parties both in Iceland and abroad. It formulates common policies on individual issues including waste management and therefore works closely with the government.

The functions of the office of the Association of Local Authorities in Iceland are to implement the association′s policies, defend the interests of the municipalities, provide information on particular aspects of local authorities and publish material concerning local authorities.