Hobbiton is a village in the Shire. It is one of the older villages located in that land, and is roughly in the center, geographically. Notable locations in Hobbiton include the Mill and the Baggins' hill-mansion, Bag End.
History:
During the War of the Ring, Saruman's treachery destroyed much of the Shire, and Hobbiton suffered greatly. The Old Mill had been replaced with a noxious factory-like structure, and many trees cut down. After the servants of Saruman had been expelled from the Shire, Sam Gamgee used magic soil from the garden of Elf-Queen Galadriel to heal the Shire in general, but with particular attention to Hobbiton area.