According to the Merriam-Webster dictionary, anarchy has several meanings:
1a : absence of government
1b : a state of lawlessness or political disorder due to the absence of governmental authority
1c : a utopian society of individuals who enjoy complete freedom without government
2a : absence or denial of any authority or established order
2b : absence of order : disorder
While option 1c is theoretically possible, practical applications have been short-lived and confined to small communities. Option 1b is more the norm. Somalia from 1991 to 2012 is an example.