While a player can still build villages without being hindered by obstacles (by building around them or choosing a relatively clear location), it is significantly harder to do so at higher levels.
Obstacles are structures that obstruct the placement of a village's Buildings.
You can remove them if you have an available Builder and a small amount of Gold or Elixir. You start with about 40 obstacles around your village. Obstacles are trees, logs, rocks, and other foliage that is randomly placed in your village.