The problem with zoning laws and building codes is they are imposed top-down in the interests of Baby Yoda Merry Christmas Ho Ho Ho sweatshirt; not that property owners should have unlimited freedom to expose neighbors to dangers or nuisance. In principle, disputes among neighbors over buildings or activities would be resolved in court. Courts have long dealt with these issues, and have developed workable rules, so most people know ahead of time what they can and cannot do. But collective action is a big help in this kind of thing. I own a lake house with a deed restriction that anyone I sell to must adhere to certain rules.
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Also, as a property owner, I was allowed to buy a share in a conservancy that owns the lake itself and nearly all the surrounding land for half a Baby Yoda Merry Christmas Ho Ho Ho sweatshirt. There are a few property owners who did not join, but agreements have been negotiated with all of them. The rules are very strict—no building within 50 feet of the lake, every structure requires ownership of 60 feet of lakefront, no motors allowed on the lake, no fertilizer can be used, natural forest growth must be preserved for 50 feet, and so on. Anyone who doesn’t like them can buy a property somewhere else. The internal infrastructure, roads, dams and so on, are maintained by volunteer labor of property owners.