>>obilgi+(OP)
I believe Denmark had something like this for a while. It started with squatters taking over an area kind of like this.
Turned into a serious drug venue and eventually fell apart. Sounds like it sort of restarted, albeit with regular Danish law enforcement and other city resources.
>>blaser+X2
Its also how Vatican City exists as a sovereign state, and also many disputed territories that enjoy peaceful inaction as long as nobody brings it up