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Arendal has gone from being a small southern village, based around seven small islands, to become the tenth largest town in Norway in terms of population. Other villages in the municipality include Tromøy, Rykene, Eydehavn, Strengereid, Kongshamn, Kilsund, and Hisøy.


Eydehavn village is located about 10 kilometres northeast of the city centre of Arendal, about 2 kilometres south of Strengereid, and just across the Tromøysundet from Kongshamn.

The village is named after Sam Eyde, the Norwegian engineer and industrialist. The founders of Norsk Hydro, was Sam Eyde and Kristian Birkeland.