Konoha was founded around 60 years ago when the Shodai Hokage and his younger brother began to recruit shinobi from many different places in the Fire Country to work as one organization. This was a time of constant warfare, so the group joined forces in order to better protect each other and their nation. Shodai was an extremely powerful man and the only one capable of using Mokuton or controlling the power of a bijuu.
After a few years, the Shodai Hokage was killed and his brother went from being the second in command to becoming the Nidaime Hokage. It was during his reign that the infastructure of Konoha began to increase and the village began to resemble more the form it is currently in. Nidaime excelled in the usage of Suiton, and was capable of using powerful Suiton without a source of water or expelling the water from his body.
After the premature death of Nidaime, a man who had learned at the feet of both Hokage, Sarutobi, was chosen to be the Sandaime Hokage. During this reign Konoha was still involved in wars, including one against Iwagakure, and would face off against Suna. But Sandaime would usher in an era of peace by forming treaties with several villages. He was known both as The Proffesor, due to all the jutsu he would master, and The God of Shinobi, due to his power and skill. He would go on to become the only Hokage to retire.
Prior to his retirement, Sandaime chose who would become his successor. Konoha was now ruled by the Yondaime Hokage, a man of virtue and legendary power. He was known as Konoha's Yellow Flash due to his bright yellow hair and his Shunshin. But early in his reign the Kyuubi attacked the village. Yondaime met the demon in battle and gave his life to save the village.
With the death of Yondaime, Sandaime came out of retirement to rule the village again. During this reign Konoha would go to war with Kumo, and the entire Uchiha clan, except one boy, would be killed by Uchiha Itachi. Another war arose, with Suna and Oto combining forces against Konoha. Sandaime gave his life in battle against his former student, Orochimaru, in order to save his village.
The village elders then were convinced that Tsunade, the student of Sandaime and descendant of Shodai, should become the next Hokage. She eventually accepted and become the Godaime Hokage.
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