From Wikipedia: The story begins with a prologue set in late 1960s Japan. A group of tanuki is threatened by a gigantic and ongoing suburban development project called New Tama, in the Tama Hills on the outskirts of Tokyo. The development is cutting into their forest habitat and dividing their land.As construction continues, the story resumes in early 1990s Japan, during the early years of the Heisei era. With the amount of living space and food decreasing every year, the tanuki begin fighting among themselves for the diminishing resources of their habitat until at the urging of the matriarch Oroku ("Old Fireball"), they decide to unify against the humans to stop the development. Banding together and seeking help from other tribes of Tanuki, they live up to their traditionally mischievous reputation by changing their shape and trying to sabotage the construction effort.The film plays heavily upon Japanese folklore, and many references will be lost on people who are not familiar with the details. For the references read the wiki.
