Arendal is the administrative center of Aust-Agder county, and belongs to the geographical region of Sørlandet. The municipality is bordered in the southwest by Grimstad, in the northwest by Froland, and in the northeast by Tvedestrand municipalities.
With approximately 42 000 inhabitants, Arendal is the tenth largest town in Norway, and the capital of the East Agder county, in southern Norway.
Founded on the industries of shipping, forestry and mining, the town now has a largely tourism-based economy, due to it's excellent location, climate and resources for recreational boaters and holiday makers. Approximately 150,000 people visit the town during the peak summer season of May through to September. This is when the town truly comes alive, and the downtown area, known as "the Pollen" is vibrant with market stalls, fishing boats and cultural events.