Man is a political animal...that's what Aristotle said.
There are some people that can live without being ruled, but generally, to live without being ruled means that everyone must be just and respectful. Government is not necessarily set in place to limit; it's set in place to protect. Locke's theories about the proper use of government were outlined as the need to protect the rights to property; the right to self, to labor, to possessions and land. Without government, these things could be unjustly manipulated and/or dominated, which would be detrimental to society as a whole.
In order for society or individuals to properly live without an established form of government, there would have to be few people and an understanding of and respect for etiquette. Not all people naturally consider what is good for their neighbor over what is good for themselves...stealing, murder, rape, and generally lawlessness could easily ensue, and without any form of justice or any means to enforce it, there would be chaos. To enforce it on an organized level would be the beginning of government...and thus, we're back to square one. That's why anarchy has such a negative rep. in our society.
So, for the most part, no. I don't believe most people or general society as a whole could live without government.