Yugakure

is the village that the Akatsuki member Hidan originated from. It lies in Land of Hot Water. Once a ninja village, Yugakure decided that it didn't want to stay a hidden village and transitioned out into a peaceful and prosperous village instead. However, Hidan, growing up, already showed a tendency toward violent Jashinist ways, disagreed with this and slaughtered his neighbours before leaving the village.

Appearance in Anime
A village that may possibly be Yugakure makes an appearance in the series in Shippūden episode 92. When Kabuto Yakushi and Yūkimaru are on a journey they stop here to rest. Yūkimaru meets Naruto Uzumaki in a hot spring and talks with him about how hearts can communicate. There wasn't much seen from the village in the episode, but it seemed small and had no protective walls, like other ninja villages had. It is possible it was merely a simple hot spring village unassociated with Yugakure.

Trivia

 * In Naruto episode 37, when the Third Hokage is providing an explanation for the Chūnin Exams, a masked ninja with a symbol similar to Yugakure's is briefly shown.