The Menehune are the wee people of the Hawaiian Islands; and just as there are folk legends and beliefs that the fairies of the British Isles were originally an early diminutive people, so do some traditions in Polynesia maintain that the Menehunes were an ancestral pygmy race that averaged about two feet in height. The Menehune were said to be superb craftspeople. Legends say that the Menehune built temples (heiau), fishponds, roads, canoes, and houses. They are said to have lived in Hawaiʻi before settlers arrived from Polynesia many centuries ago. There are ancient sites in the Hawaiian Islands that some inhabitants still believe are the ruins of temples built by the Menehunes. For most Polynesians, however, the prevailing accounts of the Menehune are told as if the beings have always been members of a spirit race that coexists with humans.

Folklorist Katherine Luomala believes that the legends of the Menehune are a post-European contact mythology created by adaptation of the term manahune (which by the time of the settling of the Hawaiian Islands had acquired a meaning of "lowly people") to European legends of brownies.
From time to time, native inhabitants and tourists to the islands claim to caught a glimpse of the Menehune as they scurry from bush to bush in the forested regions. Most people describe the little people with light or slightly reddish-colored skin and large fuzzy mops of hair.
Sources :
The Gale Encyclopedia of Unusual and Unexplained Vol. 3 by Brad Steiger & Sherry Hansen Steiger;
http://en.wikipedia.org/wiki/Menehune
Pic Source :
http://en.wikipedia.org/wiki/File:Map_of_Hawaii_NA.pn
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