The Independent Enclave of Islandia was declared independent from Islandia in relation to internal affairs in June 1974.

Islandia still governs the foreign affairs of the enclave. The Islandian Independent Enclave represents all religions similar to Islandia.

It has been more prosperous and successful than its Vendian neighbour, relying on farming, tourism and fishing. Lately a thriving computer software service industry and the location of significant oil and gas deposits near the border to Vendia has greatly improved the enclaves economy creating even more distance between the living standard in the enclave and the surrounding Vendia.

The borderline between Vendia and the Islandian Independent Enclave is determined by a line following the frontier towns of Aalbaek, Hvims, Sindal, Oestervraa and Lyngsaa.