Kirigakure

is located in the Land of Water. As one of the five great ninja villages, Kirigakure has a Kage as its leader known as the Mizukage. There have been five Mizukage, the current one being Mei Terumī. An unusually high number of missing-nin seem to originate from this village. A unique classification of ninja known as hunter-nin are specifically tasked with eliminating these defectors.

Kirigakure is composed of several cylindrical buildings, with the Mizukage's palace being the widest and the largest. Like its name, the village is surrounded by a thick mist, with several mountains in the background, making it difficult to find by foreigners.

History
Little of Kirigakure's early history is known. The village is not known to have participated in any of the first three ninja wars or come into conflict with the other ninja villages. Konoha ninja, however, consistently praise Kirigakure's military. Akatsuki is rumored to have been created in Kirigakure, though no known evidence for the rumor exists. Other villages remain suspicious of Kirigakure anyway. Madara Uchiha has been identified as a former Mizukage, but it is unknown which one.

Kirigakure does seem to have experienced a number of internal conflicts. The Kaguya clan once waged war against Kirigakure to quench their lust for battle. They were slaughtered by the village's superior forces. Because of the efficiency on the battlefield those with kekkei genkai have had in times of war, Kirigakure ninja and most other citizens of the Land of Water are suspicious of those with genetic abilities, and in fact have persecuted them in the past.

During the reign of Yagura, the Fourth Mizukage, Kirigakure began using a new graduation ritual for the Ninja Academy. Students wishing to move on into the ranks of the ninja would be pitted against each other in one-on-one duels to the death, thus earning the village the nickname. Students who survived the graduation became prime candidates for the Seven Ninja Swordsmen of the Mist, a group of ninja skilled with bladed weapons.

The years of the "Bloody Mist" were a time of great turmoil for the village; ninja began craving power and took part in questionable activities. Kisame Hoshigaki, a member of the Seven Swordsmen and one of the strongest ninja to have been produced by the village, defected after he tried to overthrow the government and assassinated several officials. The graduation exam itself was discontinued after Zabuza Momochi, not yet old enough to graduate, killed an entire graduating class. He too would join the Seven Swordsmen and then defect, though not before trying to assassinate the Mizukage. Despite being the reason for the village's infamy, many Kirigakure ninja believe Yagura was being controlled by someone.

Kirigakure had two tailed beasts in its possession: the Three-Tailed Giant Turtle and the Six-Tailed Slug. The Three-Tails was sealed within Yagura, though it was later removed from his body and allowed to roam free for unknown reasons. The Six-Tails' host, Utakata, was captured and had his tailed beast extracted by Akatsuki. Utakata's capture is the subject of its own arc in the anime.

Trivia

 * The second fanbook gives Kirigakure a population size of two out of five stars, a military strength of three out of five stars, and an economic strength of two out of five stars.
 * Kirigakure does not seem to have a ninja registration system.
 * Despite the persecution of people with kekkei genkai in the past, the village's current Mizukage has two kekkei genkai.
 * The village's name shares the surname of the famous fictional ninja, Kirigakure Saizō.