Icelanders established homesteads to the east, west, north, and south of the village, and by 1908 the first Polish and Ukrainian settlers had arrived in the area. The coming of the railroad brought large numbers of Ukrainians who settled throughout the district along with groups from other European countries. This mixture gave Arborg a rich cultural diversity and its own distinct character. The many different churches, the ethnic foods and the social activities are all evidence of the cultural complexity of the town.