In 913, the organization known as The Chaos proposed than in that year's election, everyone on The Land should vote for whether their village would remain within the Second Order, or secede, and join a new nation, the United Villages of the Chaos. This proposition was known as the Secession Referendum, and a third possibility was added to the question: that a village might become independent of any country, and govern itself as a sovereign village. One village voted to do so: Sorret. Also voting for sovereignty were the merfolk of West Ocean. So far, Sorret has maintained open relations with both the Second Order (or First Nation, as it's now called) and the UVC (and West Ocean's residents maintain relations with the merfolk of First Sea, which remains a part of First Nation).
Sovereign villages (or bodies of water) mostly follow the same laws as either nation, and even recognize certain organizations which are also independent of any nation, even while being an integral part of those nations. Thus far, Sorret Magic Academy continues to accept apprentices from both nations, though there is talk of each nation establishing a magic academy in one of its own villages. Beyond not being subject to the dictates of the governments of either First Nation or the UVC, there seems to be little difference in life in any sovereign territory from the way it was prior to the Referendum, though many people are interested in seeing how the situation develops in the days and years to come. One difference is in the form of government: sovereign villages, unlike countries, have only local government, since... well, they're each only one village. However, it has become necessary for such villages to deal with certain matters that might be dealt with by the federal governments of countries, as well as matters generally reserved for local governments. They accomplished this by creating a governmental form which is sort of a cross between federal and local. The government of a sovereign village (or body of water) is called a Cabinet.
It must be noted that spirit-talkers in Monab remain strictly loyal to the Order, while those in Sorret are strictly Independent. All other villages have spirit-talkers of the Order, and the Protestants, as well as Independents. Because Independents are considered the most neutral of the three denominations, there has been some talk of moving the annual Pilgrimage from Monab and Plist, to Sorret, though many members of the Order are strongly opposed to this suggestion.