is reporting that The Hobbiton set for The Hobbit is currently in progress.

The re-building of Hobbiton has begun, with the planting of hedgerows and fruit trees. An extension to the path that passes in front of Bag End has been marked out also. There will be several new Hobbit holes dotted along its length
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Click on the image from the set below to enlarge. The Hobbit is currently set for a November 2011 release.

The Rebuilding of Hobbiton