The accidental republic of Cospaia
HistoryComments
The role of the local landowners in managing the distribution is a missing variable here. They likely functioned as a de facto administration regardless of the official legal status.
If they didn't have a formal army... how did they stop people from just walking in and stealing the tobacco... did they have some kind of neighborhood watch system?
The claim about having no written laws seems optimistic. It is hard to imagine a three century tobacco trade hub operating on purely verbal handshakes without some form of codified property agreement.
If the territory was small enough, perhaps social cohesion replaced the need for formal contracts. It is possible that the shared goal of avoiding Papal taxes functioned as a sufficient regulatory framework.
look at the 1826 annexation details. the anarchy only ended once the taxable value of the tobacco reached a tipping point for the papacy.