Country Background:Not much is known of the Waterfall Country outside of Hidden Waterfall. The land surrounding the village resembles that of the Fire Country, with large trees and cliffs. The country shares borders with Earth, Grass, Fire and as of yet unnamed country.
Village Background:The majority of information on Hidden Waterfall was stated in OVA #2. Unfortunately the movie sits outside of manga continuity so village information may be proved one day inaccurate. The village itself is a lower shinobi country, being allied with Grass, Leaf, Rain and Sand. As such it participates in the Chuunin Exam with these countries. In the Chuunin Exam Naruto participated in, no Waterfall team made it beyond the second exam test. The village itself appeared to not have many active ninja when former Jounin Suien attacked the village, instead relying upon Naruto and Shibuki to defeat the ninja. For the sake of their reputation, we will assume most of the ninja were away on missions.
Village Leader:The current leader of Hidden Waterfall is Shibuki. He assumed this position from his father who passed away after ingesting the village's Hero Water.
Waterfall People and Items of Note
Hero Water:This special water from Hidden Waterfall allows a ninja to have a ten-fold increase in chakra for a short period of time. By drinking drops of the water, the ninja of the village could increase their fighting ability to compensate for their villages lack of a strong Kage leader. Unfortunately in exchange for the power, the water also eats away at your life.
Suien:Said to be the best ninja in Hidden Waterfall village, Suien betrayed his village and helped Missing-Nin from Hidden Rain attack his home village to take the legendary Hero Water. After gaining courage, Shibuki confronted Suien and the two men fought. Suien injured Shibuki and took the Hero Water. Though drinking it gave him much power, his actions angered Naruto. Accessing the Kyuubi's chakra, Naruto fought Suien and defeated him. The effects of the Hero Water greatly wear down a ninja, it is unknown if Suien is still alive.
Kakuzu:A missing-nin from Hidden Waterfall, Kakuzu was dispatched by his village to assassinate the First Hokage. After failing his mission he returned to his village a pariah. Turning his rage against his village elders, he learned the village's hidden Jinogu jutsu. This allowed him to extended his life by removing the hearts of his enemies and absorbing them into his body with Jiongu's tendrils. With these hearts he also gained their elemental affinities. He grew to only trust money and joined Akatsuki, acting as their accountant.
Rokubi:The Rokubi Bijuu (Seven-Tailed Demon) of Waterfall was housed in an unnamed ninja. Akatsuki managed to capture her and the seven-tailed demon. They extracted the demon from the woman, ending her life.