The Inn of Bree was still there, however, and the innkeeper was an important person. His house was a meeting place for the idle, talkative, and inquisitive among the inhabitants, large and small, of the four villages; and a resort of Rangers and other wanderers, and for such travellers (mostly dwarves) as still journeyed on the East Road, to and from the Mountains.
-The Fellowship of the Ring (Book 1), Chapter 9
One of the oldest human settlements in Middle-earth, Bree is the chief village of Bree-land. It is jointly inhabited by both men and hobbits. While men live in the houses at the foot of Bree-hill, Hobbit smials occupy the paths up the hill.
Located along the great East Road, Bree is heavily frequented by travellers and dwarven merchants making their way across Eriador. Many of them choose to stay in the village's inn, the Prancing Pony. Bree also has its own market hall, where local and travelling merchants sell their wares.