Kumogakure no sato (雲隠れの里, Village Hidden in the Clouds) is the hidden village of the Land of Lightning. As one of the five great ninja villages, Kumogakure has a Kage as its leader known as the Raikage. The ninja from this village seem to specialize in Lightning Release techniques. It is located on a high mountain, literally hidden in the clouds. Yugito Nii, the former Jinchūriki of the Two-Tailed Demon Cat hailed from this city, as does Kirābī, the Jinchūriki of the Eight-Tailed Beast.
Not much is known about the shinobi from Kumogakure. Besides being home to two Jinchūriki, Kumogakure is also home to the Yotsuki clan. Kirābī, the host of the Eight-Tailed Beast, is possibly a member of this clan.
The organization of Kumogakure's shinobi is slightly different from other villages. Besides the normal ranks of Kage > Jōnin > Chūnin > Genin, Kumogakure has an extra rank, that of Head Ninja (忍頭, Shinobigashira). It seems this rank is placed between Kage and Jōnin.
Unlike some other villages, Kumogakure doesn't seem to hate their Jinchūriki. In chapter 416 it is revealed the Raikage is Kirābī's brother, who is enraged when Team Hawk appear to have taken him away, showing some affection and hopefully plans to do something about it. By assumption somebody must have taught Yugito Nii and Kirābī to control their Jinchūriki as possible defense for themselves in the future like Yamato did with Naruto Uzumaki or to use their Jinchūriki as a weapon like Sunagakure no sato did with Gaara. However, it seems there are limits imposed on the Jinchūriki. For instance, the Raikage forbade Kirābī to fully transform into the Eight-Tails.
At one time, the village of Kumogakure was at war with Konohagakure no sato. However, on the day of Hinata Hyuga's third birthday, both villages signed a peace treaty. This treaty was soon revealed to be nothing more then a cover when the the Head Ninja of the time, who was in Konoha to sign the treaty, attempted to kidnap Hinata in order to obtain a Byakugan and its secrets. The Head Ninja was killed in his attempt by Hinata's father, Hiashi Hyuga. Kumogakure denied all accusations and demanded the dead body of Hiashi as a compensation for the death of their Head Ninja. On request of Hiashi's identical twin Hizashi Hyuga, The Hyuga clan and the Third Hokage, not wanting to lose the heir to the clan, decided to send Hizashi's body instead. This had another advantage, besides saving the life of the Hyūga heir. Hizashi's Cursed Seal would seal his Byakugan after his death, safeguarding its secrets. Although they are not allies, Kumogakure and Konohagakure seem to be on friendly terms now.
Kumogakure recently also lost both its tailed beasts to Akatsuki, Yugito being defeated by Hidan and Kakuzu while Kirābī has disappeared. It appears that the village is subject to using heavy handed actions after hearing they lost the Eight-Tailed Beast, the Raikage being enraged about it (additionally because he is Kirābī's older brother) and wanting to get Konoha involved since Sasuke originates there as he was the one who defeated Kirābī. The Raikage also orders a summit meeting with the other Kages and wanting immediate action taken against Akatsuki and having no concern on how many shinobi it will take to bring back Kirābī.
List of known inhabitants
Raikage Yugito Nii (deceased) Kirābī Head Ninja (deceased) Samui Karui Omoi Jei Kei Uzchiha ( brother of Jei) Raikage's female attendant Unnamed Yotsuki clan member Retrieved from "http://naruto.wikia.com/wiki/Kumogakure_no_sato"