You can think of a municipal government as a group of people who decided to do that. They could used a co-op or LLC or whatever instead; it would change the pap

You can think of a municipal government as a group of people who decided to do that. They could used a co-op or LLC or whatever instead; it would change the paperwork but not the reality. If these kinds of rules are enforceable under any legal structure, people like them, and the people who don't like them still buy property encumbered by them, they will persist.