Normally this term is used by anarchists to refer to a state of anarchy where society has been reduced to small communes within which, they believe, it is possible to maintain equality amongst all individuals whilst maintaining the anarchist belief in having no fixed leadership.

The theory then usually expands into each commune trading and working with each other commune in a balanced fashion. Though this side of it tends to change depending on which anarchist you are talking to at the time.

Completely idealist in nature as it involves a dramatic reduction in world population , a return to simplistic farming methods and the end of consumerism.

This has nothing at all to do with marxism and is more confined to the theories of the Paris Communes.