Torsby Municipality is a municipality in Värmland County in west central Sweden, bordering Norway. Its seat is located in the town of Torsby. …Torsby Municipality is a municipality in Värmland County in west central Sweden, bordering Norway. Its seat is located in the town of Torsby. The name Torsby means Thor's village. The present municipality consists of eight original local government entities: Dalby, Fryksände, Lekvattnet, Norra Finnskoga, Norra Ny, Nyskoga, Södra Finnskoga, Vitsand and Östmark. In 1952 they were grouped into four larger units and in 1974 they were all united.