First of all, this takes place 513 years after the events of Naruto, with no advances in technology. All right, read on.
The coming war between Mist and Sand has been diverted for now. However, there is talk about a newly formed Akatsuki, and fear is growing. The Cloud Village has shot ahead in technology, and plans a war on the other villages. The Mizukage has gone missing, and no one knows what happened to him. Mako Yamiha has stepped in as the new Mizukage. The Mist Village is still reeling from an attack from Akatsuki, but they have begun to grow again. Most of the shinobi were gone, making alliances with other nations. There is a new village, the Hidden Ice Village, that nobody knows how or when it was created. It seems to have sprung up from no where. Most of the minor villages are glad that there will be no war...for now...
3 years later
After the dark ninja war, it took a long time for the Villages to recover. However, this time has brought the Villages even closer together. The Mist, Sand, and Leaf Villages are constantly working together. There haven't been any sightings of Diavolo in this time, and it is generally beleived that he is planning something. Isai has been the Kazekage for a few years, and has done much as the Kazekage. Kannami has been training in the Mist Village during this time, and her suiton abilities have been greatly enhanced with the teachings of Mako. Mako has also been teaching suiton to Kuroi, who now resides in the Mist Village, in exchange for learning katon. These last few years have been peaceful, but peace cannot last forever...
The feudel lords of the great hidden villages suddenly had each village sever their alliances with other villages. Leaving each village at war with each other and ordered the destruction of the Leaf Village after the death of the Leaf Village's Feudel Lord. Isai, the Kazekage, refused to attack the Leaf Village as did Mako the Mizukage. However the Sound, Cloud, and Stone Villages followed these orders and the three villages attacked Leaf Village together. The Head ANBU of the Stone and Sound villages, however, were told the truth and learned that the feudel lords are part of a clan that's trying to control the world. The Cloud Village Head ANBU was simply taken over by a Yamanaka. The three feudel lords of those villages were killed by the Head ANBU and Leaf ninja. The Feudel lords of Mist and Sand had been controlled to poison themselves. Finally the evil Kouseki clan leader, Joutei, appeared and died in battle against the strongest ninja of the Leaf Village. New feudel lords must now be chosen and the Kouseki clan has been killed leaving no chance for corrupt feudel lords to come from the clan again.