This already exists, and is in many ways a form of communism. Take a look at kibutz's in israel.
Communism is where all property is publicly owned and each is given what they need.
A commune is a self-reliant community, likely to be small - individuals need each other. A communist state is still a state, it is not decentralized like a commune, but very centralized. Instead of relying on each other everyone relies entirely on the state.