http://www.thepowerhour.com/news4/cabool_community_dollar.htm The City of Cabool, Missouri uses privately issued silver and copper coins. Saw one of the 1/5 oz. $10 coins at the coin store today, didn't buy it because it was a little pricey though!
Huh. You're right. That is neat. I'm not sure how sustainable it is, economically, but if it did work out for them, one wonders what would happen if other communities followed suit. Can't help but think of the proliferance of Civil War tokens in circulation in that period. I'm not sure there are parallels to be drawn here, but it's interesting to think about. If federal money becomes worthless, local money may step in to fill the gap.
A quick check on google.com shows that the article originally was written in 2010, a link to the Communitydollar.com website has a bunch of Asian characters on it. I rather think that went down sometime ago.