Since when is the privatizacion of cities/towns legal?

[The Johnny]

http://www.eluniversal.com.mx/notas/840105.html

Buford, the smallest town in the USA, with only one habitant, and situated in the state of Wyoming, was sold today in an auction to two vietnamese for $900,000 -9 times more than its initial price-

I mean, isnt that land ultimately the ownership of the state or the federal government?

Dont you guys have uhhh, a cap on the size a single property can extend to?

Does this mean they can make their own laws and enforcement?

I recall this being done by private prison companies that buy entire towns, so im not sure what this trend means.

Its sort of like the privatization of territories that arent profitable for the government to companies... like a sort of thought process "this territory doesnt have strategic value in natural resources nor taxation, we rather sell it for some money than let it just sit there being worthless"?

[Cain]

Well, really, Buford might be a town on paper or whatever, but, actually, it's a house, and shop.

So a Vietnamese pair bought a house and a shop.

[The Johnny]

oh geeze, its not even a square kilometer... nevermind