The Lord of the Rings Online Developer Diary
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Long ago, Fallohide Hobbits made their way over the Misty Mountains and through the wilds north of the Trollshaws, following the Hoarwell River as they traveled. Many pressed on into the lands further west, finding themselves at last in the gentle bosom of what would become The Shire. Some, more adventurous and accustomed to the Big Folk of Rhudaur who had not yet turned to villainy, chose a secluded area beneath the heavy cover of the Grimwood in Hithlad. There, these intrepid Hobbits have lived in seclusion and general safety for centuries.
While searching the north for signs of the enemy, at the behest of Elrond, Lainedhel discovered both the Hobbit village and a force from Angmar pressing through the Ettenmoors. Upon returning to Rivendell, Lainedhal made his report on the forces he discovered far to the north. Elrond saw the forces as no threat to Rivendell and wished no one to interfere with their plans, but the innocence of the Hobbits spoke to the Elf's heart, so he organized a force to enter the Ettenmoors and protect the Little Folk from the ravening hordes of Angmar.