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The plots of the Touhou Project revolve around the strange phenomena that occur in the fictional realm of Gensokyo (幻想郷 Gensōkyō?, literally Illusion Village or Fantasy Village) in Japan. Long ago, it was a desolate place haunted by yōkai who preyed on lost wanderers in the area. Soon exorcists were sent into the area to resolve the yōkai problem, and they eventually settled in the area as a check on the yōkai. As human civilization advanced elsewhere, the power of yōkai began to diminish and they chose to seal Gensokyo away from the outside world as a haven for themselves.
As a result of the seal, the isolated community developed its own civilization. As opposed to the outside world, magical and spiritual qualities prevailed over science and while yōkai and humans coexist, they still fight with each other. The only known gateway from the outside world into Gensokyo is the Hakurei Shrine on the border of Gensokyo. However, the seal has weakened and more humans are able to wander into Gensokyo from the outside. Things disappearing from the outside world such as extinct animals and vanishing traditions tend to show up in Gensokyo.
[Source] en.wikipedia.or...