Libertarians aren't the brightest bunch to begin with, but regardless, saying "look at this community that was wrong" in response to people wanting to remove central authority is not really an argument against the idea.

The entire point is that people are free to govern themselves. Governing well is up to the local communities. Some would do better than others, certainly. But with time, people would discover what works and what doesn't. They would make mistakes like these and learn from the natural consequences of their actions. It's imperfect because humans are imperfect.

Next problem in the world right now: trash dumping.