Valley of the End

The is located close to the border of the Land of Fire and the Land of Sound. Shortly after the foundation of Konoha, the Senju's leader, Hashirama Senju became the First Hokage, much to the dismay of the fallen Uchiha leader, Madara Uchiha, who intended to destroy the village with the forced assistance of Kurama — the Nine-Tails. The valley was carved out by Hashirama's Top Transformed Buddha's barrage. The battle ended with Hashirama victorious, Madara faking his death and going into hiding, and Kurama sealed within Hashirama's wife, Mito Uzumaki.

The destructive power displayed in the epic battle left a scar in the earth that would come to be called the Valley of the End. With the waterfall serving as a border between the Land of Fire and the land that was later known as the Land of Sound, the valley was later memorialised with two giant statues of the main combatants: Hashirama on the Land of Fire's side of the waterfall and Madara on the opposite side to symbolise his defection from their village. The statues are posed to make the Traditional Shinobi Sparring's, which is protocol before a duel.

Years later, at the end of Part I, Naruto Uzumaki chased the now missing-nin Sasuke Uchiha to the valley in order to bring him back to the village before the latter attempts to kill him to acquire the Mangekyō Sharingan. Ultimately, using their greatest attacks at the same time, the battle ended with Sasuke emerging as the victor, with the statues of Madara and Hashirama receiving moderate damage during the fight.

In Part II, Tobi goes to the valley and sits atop Madara's statue as he muses over what path Sasuke will take.

Trivia

 * The valley was part of the background in the fifth and twelfth Naruto: Shippūden openings.
 * In the Studio Pierrot produced anime cutscenes of Naruto Shippūden: Ultimate Ninja Storm Generations, both the start and end of Hashirama and Madara's battle were greatly elaborated. During this depiction, it was shown that a single deflected Tailed Beast Ball from Kurama resulted in the formation of the Valley of the End.
 * In Tobi's recollection of the events, Madara was stabbed through the front. In Hashirama's retelling of the events, he had actually stabbed Madara from behind.