Short answers, pulled from the story.
Sarehole Mill is a Grade II listed water mill on the River Cole in Hall Green, Birmingham, England. It was built in 1542 on the site of an earlier mill and is now run as a museum by the Birmingham Museums Trust.
Tolkien lived within 300 yards of Sarehole Mill between the ages of four and eight, at a time when the surrounding area was rural Worcestershire countryside. He later identified the mill as the inspiration for the Mill at Hobbiton in The Lord of the Rings.
In a 1966 interview with Guardian journalist John Ezard, Tolkien described Sarehole as "a kind of lost paradise," recalling "an old mill that really did grind corn with two millers, a great big pond with swans on it, a sandpit, a wonderful dell with flowers." He added, "I always knew it would go - and it did."
The 2012-13 overhaul of Sarehole Mill cost £375,000. The project restored the roof, chimney, millpond, water wheel, and machinery, returning the mill to flour production.
Matthew Boulton was one of the pioneers of the Industrial Revolution and a leading figure of the Lunar Society for scientific experimentation. He leased Sarehole Mill as early as 1755 and is believed to have converted its machinery for metal working.
There are only two working water mills in Birmingham. One is Sarehole Mill in Hall Green; the other is New Hall Mill in Walmley, Sutton Coldfield.