Although the Hobbits took different routes west, they eventually arrived in a land between the River Baranduin (which they renamed the Brandywine) and the Weather Hills. There, they founded many settlements, and the divisions between the varieties of Hobbits began to blur. By TA 3001, the Hobbits of the Shire included families of Bagginses, Boffins, Tooks, Brandybucks, Grubbs, Chubbs, Hornblowers, Bolgers, Bracegirdles, and Proudfoots.
Originally, Fallohides were often found as leaders among clans of the other Hobbits. Around the year TA 1600, two Fallohide brothers, Marcho and Blanco, decided to journey across the River Brandywine and settle on the other side. Large groups of Hobbits followed them, and most of their former territory was depopulated. The Hobbits who had left called their new home the Shire.
The Hobbits of the Shire originally swore their allegiance to the last Kings of Arnor. However, after the Battle of Fornost, the kingdom of Arnor was destroyed. To replace the king's authority and leadership, the Hobbits elected their first Thain of the Shire, Bucca of the Marish, from among their own chieftains. The Thain was responsible for chairing the Shire-Moot and leading the Muster of Hobbitry-in-arms in emergency situations. However, conflict rarely threatened the Hobbits of the Shire, and the Thain usually had no need to exercise his authority.