Land of Water

is composed of many islands, with each having its own unique traditions. The country's weather is typically cool and the islands are usually covered by mist. The islands themselves also feature many lakes. In some places, like the area where Haku grew up, it is very cold and snows quite a bit. The nation is oriented towards the element of water. Its government leader is the Water Daimyō.

Little is currently known about it and it apparently leaves itself out of most political affairs, which is understandable considering that it is composed of vast islands relatively remote from the continent containing the other four major countries. What is known, however, is that the country used to be ravaged by many civil wars, during which clans with kekkei genkai were used extensively, causing many to view them as harbingers of war and death, leading to purges and genocide to the point of parents killing their own children. Many clans went into hiding, such as the Yuki clan.

is a regional speciality of the Land of Water.

Unknown Island
In the anime an inhabited island exists off the coast of the Land of Water. Chōjūrō and his team were supposed to rendezvous with the Tsuchikage's messenger, Akatsuchi.

Trivia

 * In matters of land area, the Land of Water is undoubtedly the smallest of the five great nations.