Here's an interesting article in The New York Times about Gurgaon, India, where "economic growth is often the product of a private sector improvising to overcome the inadequacies of the government."
In 1979, the state of Haryana created Gurgaon by dividing a longstanding political district on the outskirts of New Delhi. One half would revolve around the city of Faridabad, which had an active municipal government, direct rail access to the capital, fertile farmland and a strong industrial base. The other half, Gurgaon, had rocky soil, no local government, no railway link and almost no industrial base.
As an economic competition, it seemed an unfair fight. And it has been: Gurgaon has won, easily. Faridabad has struggled to catch India's modernization wave, while Gurgaon's disadvantages turned out to be advantages, none more important, initially, than the absence of a districtwide government, which meant less red tape capable of choking development.
As you'll discover, the district isn't a utopia, libertarian or otherwise. But it's a fascinating study in the ways people pool their resources to fill the gaps left when state services are inept or absent. "To compensate for electricity blackouts," the Times reports, "Gurgaon's companies and real estate developers operate massive diesel generators capable of powering small towns. No water? Drill private borewells. No public transportation? Companies employ hundreds of private buses and taxis. Worried about crime? Gurgaon has almost four times as many private security guards as police officers."