New Iceland is province of the SLC and a member of the Commonwealth of the Scandinavian Realm. This was, then, the flag of Lýðveldið during its rather brief period of full independence, and then of the Province of New Iceland (still called a lýðveldi mainly for tradition/historical reasons). Following accession into the SR, new flags were introduced in line with those of the other members of the SR. It is these new flags which are used to represent New Iceland as a member of the SR outside the NAL. Inside the NAL, the provincial blue Dannebrog is used (at Philadelphia, for example). At the Þingi in Gimli, both the blue ensign and the red SR-type ensign are used simultaneously, to show both the status as a province of the NAL and a member of the SR. In fact, in most cases where a flag would be officially displayed, both ensigns are used. In private use, either is acceptable and both are indeed used commonly, oftentimes both at once.
The Provincial Flag is always flown together with the flag of the SLC, and usually also with the flag of Iceland. If the flags of New Iceland and the SLC are present, the flag of New Iceland is on the viewer's left, and that of the SLC on the right. If the flag of Iceland is present too, the flag of New Iceland is in the middle, flanked on the left by the flag of SLC and on the right by the Icelandic flag. In all cases, the flags fly at equal height.
