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The club was founded in 2001 with a merger of three local clubs, Íþróttafélagið Þróttur Neskaupstað, Ungmennafélagið Austri Eskifirði and Ungmennafélagið Valur Reyðarfirði. The next year, for the first time, Fjarðabyggð sent a women's team to play at league level. In 2010 Ungmennafélagið Súlan Stöðvarfirði came into the merger.