Hobbiton, New Zealand Hobbiton is a fictional village which appeared in the novels: “The Lord of the Rings” and “The Hobbit” by J.R.R. Tolkien. Hobbiton village was built as a set. It is located on a farm near a little town called Matamata. It was decided to keep the Hobbit holes set as tourist attractions, (they blend smoothly into the environment), there is even a sign which says :”Welcome to Hobbiton” on the main road, directing people to this wounderful little Hobbit town.