Board Thread:Wiki Discussions and Support/@comment-142748-20141231093731/@comment-142748-20150101201551

^ Except Obito explicitly claimed they were relocated to a corner of the village after the Kyubi Attack on Konoha. The fact that nothing seems to have been moved, the Uchiha District doesn't look like a new construction, etc.

The Discrimination and Segregation was merely a lie that Obito made to get Sasuke to turn against Konoha, distorting the truth about the whole thing. Notice how in Itachi's flashbacks, there's no mention of discrimination or segregation of his people and that the Uchiha seemed to be merely seeking more power.