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(Disclaimer: No offence or disrespect is meant in anything i say in this post)The impression I get is you guys want to have it but don't want to leave your towns or pay to have it. That isn't what the special permissions section is for.
I appreciate that you think it would be a good roleplaying area, but I disagree. You're saying PvP would be enabled, stealing is fine and the area would ultimately be a dog-eat-dog area where players fight and vie for 'total control'. Good roleplaying cannot be achieved in such a scenario, it would be utter mayhem with PKs going on left right and centre. It'll be a hive of "OMG HE KILLED ME! CAN I HAVE MY STUFF BACK" irrespective of how many times you tell people what the town would be about.
I don't see it working as a public "roleplaying" area to be honest with you - I do see it working as a nice concept for an outlying 'bandit' town in which there is some control by a mayor but that isn't a role you or billy are interested in. I can't see it working.