Administrative organizations with finite spatial scope make sense, though. It makes sense for each watershed to have its own water management committee, for cities and towns to have charters for political experimentation or even just cultural uniqueness, for different biomes to have different building codes and even different urban planning guidelines, etc.

You can make the borders fuzzy, or focus on more general rules so the border is implicit in law rather than explicit, but there should always be contour lines where one set of laws and agreements transitions to other neighboring ones.