Repair
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From Diablo Wiki
Repair icon.
Most weapons and armor in Diablo III will need repairs, after the hard use they're put to slaughtering the demonic hordes. Fortunately, there's a man for the job.
Haedrig Eamon, the NPC blacksmith located in the Caravan, handles all item repairs in Diablo III. Players need merely speak to him, then click on the Repair Icon to view the item repair interface.
Repairs are probably going to be quite expensive, to act as a gold sink in the late game, but precise details have not yet been revealed.
See the Durability article for more details and images.
