The tanuki (or racoons) in the forest of Taka are upset as humans start digging up the area to build housing developments. They gather to decide what to do about the problem. Some want to declare war on humans but the wise Reverend Tsurugame decides that they should try to perfect their ability to change shape and send an envoy to seek the help of the legendary masters of shape-changing. The young raccoons practice their ability and soon become adept enough to be able to pass in the city disguised as humans. They then begin using their shape-changing abilities to sabotage the construction work and gain a great deal of amusement out of scaring humans by appearing as ghosts and various supernatural creatures. The hauntings gains much media exposure but still does not deter the construction efforts...