Arendal is a small town on the south coast of Norway. After the geographical boundaries were extended to include four surrounding communities in 1992, the town now is the tenth largest in Norway in terms of populations, but still contains only about 40.000 inhabitants in total.
Arendal was originally called the Venice of Scandinavia because the town is built on seven islands, with a network of canals surrounding it. Most of these canals have later been filled up, but they have plans to reopen some canals again.
The most glorious period of the town history was during the sailing ships era, in the 18th and 19th century. Arendal was at one time one of the largest and most important towns in Norway. Arendal's wealth was based on shipping, with the surrounding iron ore mining, iron works and timber providing the most important trade. Arendal had connections to all important trading centres of the world, and had better contact with Europe than with the country's capital of Christiania (or Oslo, as it was later to be called).
The introduction of steam ships gradually reduced the town's importance, but the old traditions have been retained, for example in the atmosphere of the Tyholmen area, where the collection of wooden buildings is reckoned to be among the most picturesque and best preserved of its kind, and in 1992 was awarded the much coveted Europa-Nostra prize.