The Land of Hot Water (湯の国, Yu no Kuni, English TV: Land of Steam) is a country that shares borders with the Land of Frost, the Land of Sound, and the Land of Fire. Its government leader is the Hot Water Daimyō. Hotsprings are common throughout the country, many of which have at least some amount of human settlement built around them. These hotsprings are frequently the settlements' primary or even only source of revenue.
In Konoha Shinden, the Land of Hot Water is noted to have two other major products related to its many hotsprings. The first is the spring water itself, which is thought to have medicinal qualities determined by its mineral content. Specialised doctors throughout the country will advise patients to visit specific hotsprings particular to their illness and drink the hotspring's water to get better. The second is potatoes, which grow in abundance throughout the Land of Hot Water and which most settlements have their special way of preparing.
With so much of the population living in remote locations and with its economy being so reliant on tourism, the country has pronounced peaceful tendencies; the Land of Hot Water's ninja village, Yugakure, is largely responsible for maintaining this peace. During the Fourth Shinobi World War, much of the country is evacuated so as not to get caught up in the fighting between Akatsuki and the Allied Shinobi Forces.