Israel - the kibbutzim. That's communism, on a scale of 50 inhabs or less, and works perfectly. Check the Wiki.
That's nice except it wasn't implimented by the government and it has regressed more or less back into capitalism since the initial problem that led to it's creation.
from wiki:
The kibbutzim were founded in a time when independent farming was not practical. Forced by necessity into communal life, and inspired by their own socialist ideology, the kibbutz members developed a pure communal mode of living that attracted interest from the entire world. While the kibbutzim lasted for several generations as utopian communities, today kibbutzim are scarcely different from the capitalist enterprises and regular towns to which the kibbutzim were originally supposed to be alternatives.
Translation: It started out as a great solution to a problem, but when the need for it vanished, people stopped liking it so much.
Farming co-ops are actually extremely common in the United States, because
independent farming is not practical. Multiple farmer form into coops so they can leverage their market power more effectively.
http://en.wikipedia.org/wiki/CooperativeI think the reason small socialist communities succeed is due to the fact that they are able to find enough people who are
willing to particiapate. It doesn't work on a national scale though. It never has.