Earth Commune
The Earth Commune was an Earthbender state led out of the NPC village that is now known as Bålsarp, acting as a buffer state between the Air and Fire Nations during a period of heightened tension between the two powers. Led by General Secretary Clabe, the Commune was one of the first attempts at an Earthbender state before its ultimate collapse.
Beginnings
The Earth Commune consisted almost exclusively of one village de facto but claimed much greater lands to the north and west. Mostly populated by NPCs, Earthbenders were a minority but did claim effectively hegemonic control of the territory. Frequent zombie raids and theft by travellers saw the territory lose much of its population and resources.
Recognising its somewhat fragile position, General Secretary Clabe sought protection for his fledgling Earthbender state. In recognition of the vast Fire Nation army, he requested vassalage by Firelord Alweglim. This request was granted, and the Earth Commune was guaranteed protection by the Firelord in exchange for ultimate deference to him on questions of policy and for a mutual exchange of resources.
Zombie Crisis
During the Zombie Crisis, the Earth Commune was the first to be recognised as entirely depopulated. Due to the ravaged state of its farm caused by traveller thefts, this was initially suspected to be a raid. Were this the case, this would have constituted an act of war against both the Earth Commune and its suzerain, the Fire Nation, so Firelord Alweglim began an investigation to determine what had happened. The final verdict of this investigation was that the townsfolk had been killed by zombie attacks rather than player activity, the farms had been destroyed by spontaneous theft rather than coordinated action, and was deemed to be a tragedy but not an act of war.
Exile
Recognising the deathblow dealt to his nation, General Secretary Clabe renounced his territory and set up a bunker at Air Temple Valley, revoking his protection by the Fire Nation, with the intention to establish a new Earth Commune under Air Nation protection. During the ascendancy of the Earth Kingdom, Clabe was offered citizenship by Earth King Ainin on multiple occasions but ultimately rejected these offers. When the Fire Nation began work on Fenixholm Slott, the former village of the Earth Commune was annexed without protest.
Unlike Mexico, the Earth Commune has never officially ceased to exist. Both are in the category of "Defunct States" as both once held territory and now are without any, but Mexico formally declared its own dissolution whereas the Earth Commune does still claim to exist. Time will tell if it reemerges as a sovereign power or if it shall be confined to a small stone box in Air Temple Valley forever more.