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, Hashirama Senju and Madara Uchiha fought for control of the village. Hashirama emerged victorious and Madara was believed to have died. Their battle - which involved the Nine-Tailed Demon Fox - left a scar in the earth that would come to be called the Valley of the End.

In memory of their battle, two giant statues were built on opposite sides of the waterfall, Madara on the Land of Sound side and Hashirama on the Land of Fire's side. The statues are making the Traditional Shinobi Sparring's, which is protocol before a duel.

Years later, at the end of Part I, Sasuke Uchiha and Naruto Uzumaki fought at the valley. Naruto fought to bring Sasuke back to Konoha, while Sasuke fought in an effort to kill Naruto in order to gain the Mangekyō Sharingan. The battle was a draw, neither proving successful in their goals, but only Sasuke walked away under his own power. The statues of Madara and Hashirama received 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 seen in the background in the fifth Naruto: Shippūden opening.
 * 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.