Cheerful Dwarves of the Forest: Belfy & Lillibit) is a Japanese anime television series with 26 episodes, produced in 1980 by Tatsunoko Production in Japan in cooperation with Tokyo Channel 12.
Snagglebit, the spoiled son of the mayor, is enamored of the beautiful Lillabit, but she is best friends with Willibit, the moral role model and main protagonist.
Another frequently recurring child character is Teenybit (Willibit's younger sister), who befriends Scarybit, an ill-tempered, superstitious old woman assumed to be a witch and shunned by most of the other villagers.
However, in the second-to-last episode of the series, it was revealed that Lillabit's parents were in fact alive and were "Wanderbits" (descendants of the "Builderbit" race who were exiled from Foothill Forest for how they treated the animals who rose up and nearly drove them to extinction).
When they're not involved in politics (for example, one episode in which they attempted to get their apathetic fellow villagers to vote on election day), the children spend much of their time exploring and interacting with the animals of the forest, both friendly and unfriendly, including raccoons, bears, bullfrogs, squirrels, fish, and horses.