Disclaimer: Unfortunately, I own nothing in the Naruto anime or manga. If I did, I would be one of the happiest people ever!
The History
Of the many qualities that start up the wheel of progress for Hidden villages within the shinobi continents, trade and commerce would likely be near the peak of the list. A village old in creation, though new to its recently gained title of Hidden Village, Hanagakure no Sato had finally begun placing its foothold into the stirrups of success.
Settled firmly between the three countries of Sound, Fire, and Waterfall, the village hidden in the blossoms owes much of its wealth to the crossing canals formed from two major rivers that cut their paths from the west coast to the borders of Wind and Stone, and from the north coast into Fire. A constant flow of cargo ships carried goods from every walk of life along these canals, bringing travelers, merchants, mercenaries, ninja, and other such opportunists to the crossroads in search of their fortune.
Hanagakure was formerly named Yotsukado, a small town of simple merchants and farmers; the canals providing transport for wares as well as precious sediment that make the soil exceedingly fertile for crops. However, with the wars waged on all corners of the continent it was only a matter of time before troubled shinobi, running from the pressures of duty, honor, and death, arrived and made their own attempt at starting over. Small militias, much like the one within Takigakure, banned together to protect the port town from raiders and other enemies. Gradually more and more ninja joined them, lured in by the feeling of freedom in a village of "misfits" (so called by the fact that most of the ninja were outcasts), and eventually began having children onto which they passed their training and techniques. A huge diversity of shinobi with varying skills and levels of talents within the village caught the attention of nobles and daimyos alike, bringing in missions and another form of income. The village was embarking on its way to greater power.
Growth spawned larger buildings and production of industry, and before anyone realized it the small town was evolving into a larger town and then into a small city. The ninja population boomed in response to the rapid success of acquired missions, so finally an academy was built to teach the new generations. The final step that tied the knot happened shortly after the war between Iwa and Konoha. Powerful tensions bridging the two led to hasty alliances made with the village acting as the buffer zone; far too many advantages lay in allying with a village not only holding up the economy of the many surrounding it, but the potential transport of the canals was also an edge. Business for Yotsukado increased and the tiny city transformed into an enormous one.
The city was named for a blossom for the three layers of Petals it formed when viewed from above. The Inner Petals house the civilian area and the main port through which the boats unload and reload their cargo. A gigantic wall, rimmed with defensive spikes and gatehouses for guards, outlines the Inner Petals and provides protection for the heart of the village. The Secondary Petals are the sanctuary of the shinobi clans, forming the living barracks and flat plains for training grounds through which they spend their days. Outlets from the walls lead irrigation systems out through the Secondary Petals, providing water for the ninjas as well as another facet to their training. Finally there is the Outer Petals which act as the vast farmland, the water for crops led to them from the Secondary Petals. All in all, it is a simple matter for the shinobi to go out and defend the Outer Petals from attack, or draw behind the walls to protect their civilians. The village symbol pays homage to the flower shape surrounding the canals, as well as to the central importance they play as the foundation the village sits upon: two lines are drawn perpendicular to one another in an equal cross-shape, the outer ends of each line forming a hook shape that all flow in a clockwise direction- thus forming a simplified flower design that would be etched into the forehead protectors of all shinobi claiming allegiance to the village of blossoms.
The government originally consisted of a council of elders, old merchants and farmers whose families helped to create the foundations of the village itself. Yet with the rise of shinobi power and the status of Hidden village on the horizon, it was imperative that a Kage be elected into office. The top Jounin held countless conferences and tests to narrow the selection, until finally a choice was made and they elected their Shodaime, the Gurenkage; Otome Fuji. Following her term the village was christened "Hanagakure no Sato" and a tower for the Gurenkage placed at the apex of the canals, forever looking out over the village. Now holding all the sources to become a Hidden village, all that is needed to be officially recognized by the rest of the continent would be to play host for the up and coming Chuunin Exams...
Tbc
Translator:
Hanagakure no Sato- Village hidden within the blossoms
Yotsukado- four corners; crossroads
Takigakure- Village hidden within the waterfall
Shodaime- the First (in reference to the first Kage)
Gurenkage- Shadow of the crimson lotus
Otome Fuji- Wisteria maiden (in reference to the traditional ending scene in Kabuki Theater)
Author's comment: From this point I am including a translator of sorts for the Japanese used within the story- words commonly used, however, will not be repeated (as it would be redundant). If I use something that you don't understand and haven't made a translation for it then feel free to alert me. Please review if you have questions or comments- flames will predictably be ignored.