As an actual libertarian, and not the OP, first off: fuck you and your broad brush assumptions. Second, under the laws of the State (and without the unnecessary moralizing from the OP), privatization is probably the only answer that stands a chance in hell of succeeding. That said, libertarians aren't anarchists. Anarchists are anarchists. Privatization, by and large, is pushed by crony capitalists who call themselves libertarian because libertarians are the next-strongest party they have yet to co-opt completely. There is no conflict at all in allowing a legally constituted municipality from extending service to their borders. It becomes problematic when they reach beyond, because they will always have their powers limited by the laws of the State that grants them their very power to exist /at all/. Ultimately, the best thing that could happen is a peering agreement and setting up a legal entity, of whatever stripe necessary, within Pinewood in order to administer the portion of the service in operation outside of the jurisdiction of the county. Jurisdiction is of great importance in US law, and is certainly a significant part of this ruling. It is almost unheard of for a legally-constituted arm of government to operate outside of its jurisdiction. It requires utmost adherence to all applicable laws, and is even then undertaken with kid gloves for the most part.