Arendal - The Heart of Southern Norway. Founded on the shipping, forestry and mining industries, Arendal developed into one of the wealthiest towns in Northern Europe during the 17th and 18th centuries. Evidence of the town's golden days can still be experienced by walking through the old part of town called Tyholmen. Amongst the many beautiful old wooden houses you can find Arendal Town Hall, one of the largest wooden houses in Northern Europe. Arendal has an exellent location, literally "on" the water - being built on 7 small islands and known as "Venice of the North". Its climate and resources have made it one of the most popular Places to go for recreational boaters and holidaymakers during the summer. Arendal is also known for hosting a vast number of festivals, events and activities.