Hlíðarvatn is in Sauðaneshreppur in N-Þingeyjarsýsla, about 15 km from Þórshöfn. It is 0.27 km² in area, rather shallow and at 9 m above sea level. Streams flow from it through Krossós to the sea. The reason that the lake is sometimes called Bæjarvatn is that the farm Hlíð is close by. The fish in the lake are excellent, both Arctic char and brown trout. Most are resident fish, but some sea-run char and sea trout migrate through the streams. Most of the char are about 300 – 400 g but the largest are probably about two pounds. The brown trout are a little bigger, 400-600 g on average, and the largest are about two pounds. The Arctic char are more common. Considerable net fishing is practiced in the lake.