Hmm, you could call this type of government a federated system. Have it broken into different states and counties, maybe with local city governments. Enumerate some powers reserved for each while keeping a central authority to make sure everyone is assured at least a minimum of rights.
It won't if you don't actually draw the lines between states accordingly.
(Counties don't mater, because they don't possess any sovereignty - they only have such political power as the legislature of the respective state gives them.)
Naw, would never last.