The tools you can acquire in Rune Harvest are:
Watering can - waters 1 square of land. Must be refilled.
Hoe - tills 1 square of land.
Axe - chops branches for the wood shed (you need these to upgrade your house and build monster huts).
Hammer - smashes rocks. You need this for mining.
Fishing rod - you fish with it.
Pet Glove - You pet monsters with it to befriend them and get them to work for you.
Brush - Used to brush your monsters and acquire more friend points with them. The more friend points the more they like you and the better they will preform for you.
Shears - Used to cut the fur of Woolies.
Milker - Used to collect milk from the Buffamoos.
Basket - Used to collect eggs and honey from monsters.
At the beginning of the game you will only have a watering can and a hoe, which Mist gives to you. In order to get the rest of the tools you need, go into town and talk to everybody! Here is a list of the town's people who will give you tools and what they will give you:
Axe - Bianca (the rich girl) will give you an axe if you go and talk to her inside her mansion.
Sickle - Till 50 squares of land with your hoe and talk to Rosetta at the seed shop.
Hammer - Unlock Carmite Cave (talk to the mayor and he will give you the pass), and then till 50 squares of land inside the cave. You don't have to plant anything. Then talk to the blacksmith, Leo.
Fishing Rod - You must walk out onto the dock at the beach and go to the very end. Sabrina will then walk up to you and give you the fishing rod.
Pet Glove - Go to the mansion and talk to Tabatha (the maid).
You must have these tools and have built at least one monster hut and befriended one monster in order to get the rest of the tools. You can acquire them from:
Brush - Go and talk to Felicity while she's in Neuman's shop.
Shears - Go and talk to Camus while he is in his shop.
Milker - Go and talk to Jasper at his mansion.
Basket - Go and talk to Neuman at his shop.