The most famous village in the land ofthe Hobbits of the Shire was Hobbiton in Westfarthing. It was a humble Hobbit village built on and around Hobbiton Hill with a mill and granary on a stream called the Water.

The village became famous because on that hill was the street of Bagshot Row and the hobbit-hole of Bag End. This was the home of the most celebrated of all Hobbits of Middle-Earth, Bilbo and Frodo Baggins, who played such critical roles in the War of the Ring. Also living on Bagshot Row were the Gamgee family (at Number 3). Samwise Gamgee also played a role in the War of the Ring.
Encyclopedia entry originally written by High_King_Of_Gondor