This report comes from the Official Star Wars Site!
Answered by: Gavin Bocquet
Since Episode III is the last episode, what happens to all the sets once you're finished?
Most of the large set pieces will be destroyed, as they have been on Episode I and on Episode II, and as they are on all other films. Most film sets are not built to last more than a couple of months, as this would add a great deal to the budget, so there would be no point in keeping them.
However, Star Wars is a little different than other films and certain pieces from the shoot are kept and stored at the archive at Lucasfilm. Usually this will include any smaller and interesting set pieces, usually things like speeders or starfighters, if they are not too big. If they can fit into a shipping container then Rick McCallum and George Lucas will discuss whether a certain piece is worth keeping. But in general most 'sets' are not kept.
The largest pieces we have kept so far are a full-size Naboo starfighter from Episode I, and a full-size Jedi starfighter from Episode II.
A lot more of the props and set dressing will be kept, as well as the costumes, since they are smaller in volume and therefore much more easy to store and transport.
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