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What the Republic of New Venice is

If one lived in a state of anarcho-capitalism, what would it be like?  Could such a state exist in reality, or is it only an ideal to which we strive to move as close as possible?  I started this blog as a thinking exercise, dealing with objections to why the anarcho-capitalist state could succeed.  This will be a patchwork quilt of sorts (philosophically speaking), as I will touch on certain ideas as they occur to me, rather than go through a structured topical list.  I intend for this to be an airing of ideas, and why some objections are correct (or not).
 
From what I've seen, the advocates of anarcho-capitalism and Austro-libertarianism detest the State to the point that they do not involve themselves in the political process;  they rely on education rather than seeking to influence the government through political means to achieve their ideas.  In my opinion, such a course of non-action is not likely to succeed, since I observe that it is human nature to desire the State to have control; not necessarily of one's own life, but over the lives of neighbors and countrymen whom one envies or despises.
 
But the idea of a minimalist State is intriguing, and I wish to explore the arguments for and against, by putting up objections that either I've heard elsewhere, or have considered myself.
 
Imagine that one lives in an island nation named "The Republic of New Venice", which has a Constitution that severely limits the power of the government.  What if....
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