The whole manga series is based on the ninja world. It takes place in a virtual world consisting of five great nations and two-three other nations that are not so important. The main character Uzumaki Naruto resides in the hidden leaf village located in the Land of fire also know as the Konohagakure which is lead by the Hokage. The people of hidden leaf village are said to follow the will of fire. It is featured mainly during the series and most of the happenings take place there in the series.
The other Nations are:
Land of Wind – It hosts the Hidden village of sand lead by Kazekage.The ninjas of this village specialize in wind based Justus however it has been seen in the series that they also use puppets for fighting.The Current Kazekage.The Garra is a very good friend of Naruto.
Land of Water – It hosts the Village Hidden in Mist also known as the Bloody mist as it used the brutal methods such as killing own comrades for graduation for training. It is also home to the seven swordsmen who can wield heavy swords and have massive amount of chakra.
Land of Lightning — It hosts the Village Hidden in the Clouds lead by the Raikage. The ninjas of this village specialize in lighting based Justus.
Land of Earth — It hosts the Hidden village of earth lead by Tsuchikage. The ninjas of this village specialize in Earth based Justus.
The other villages that had been featured in the manga but are not that much important:-
Land of Waves – It is shown in the very beginning of the manga and the Naruto gets his real combat experience there only where his team fights one of the seven swordsman namely Zabuza. It does not have any of the hidden village.
Land of Rice – It hosts the hidden village of sound that was lead by Orochimaru. The ninjas of this village specialize in the Sound based Justus but the main purpose of this village was to act as a safe house for the Orochimaru to conduct his experiments.
Land of Star — It hosts the hidden village of star. It was shown in the anime series not as a part of the original manga series.