The Shire was a large area in the north-west of Middle-Earth where most of the Hobbits of this time lived. Bilbo Baggins lived there alone in a large, luxurious hole in a small town called Hobbiton. There he was visited by a company of thirteen Dwarves (Thorin & Co) and one wizard called Gandalf on April the 26 in 2941 of the Third Age. This is where the story really begins.