The Senju clan grew tired of the endless fighting, and approached the Uchiha clan with a peace treaty. Madara feared that an alliance would ruin the Uchiha, but his clan disagreed, and he was forced to accept the treaty. The two clans came together to form Konoha, with Hashirama Senju, leader of the Senju clan, being selected as Hokage. Madara believed that this was proof that the Uchiha would be made subservient to the Senju, but his clan saw this only as his attempt to rekindle the flames of war. They turned their backs on him, and he defected. Following Madara's betrayal, the Second Hokage gave the Uchiha control of the Konoha Military Police Force as a sign of trust. According to Tobi, this was really just a way of keeping the Uchiha in check and out of Konoha's governing affairs. Over the years, some Uchiha, such as Setsuna, have figured out this motive's true meaning, and tried to rebel against the village as Madara did, but they found that it was too late to make a difference, as the Senju had already completely suppressed the Uchiha. the village was rebuilt and now its where all the Uchiha clan resides.
Naruto: The Shinobi's Shroud [Open]
A little more than your average Naruto guild
