It's absolutely killing me that I can't find it. I only saw a few pictures of it while browsing through anime, and I promised myself that I'd go back to it later, but I forgot what it was called.
What I remember is that the anime had a strong focus on japanese folklore, which is what drew me in. From what I remember, most of the characters where fictional beings from myth. Like there was this one, seemingly fodder character, who looked like an oni. He was red and had horns, but he was in a kimono, and looked like just a regular not important citizen. I'm pretty sure most of the people were like this. They where all japanese myth creature living in this traditional old-school town like it was normal. It definitely must take place in the past. Oh, and I'm pretty sure there was a girl in a red... Something who is the lead. She looks like a human, though I don't know if there is anything special about her. The anime looks like it was made more recently, so I don't think it's older than like 2009.
Please help!
EDIT: One more thing. It doesn't look like the type of anime with like fanservice or anything like that.
