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Comment: because their wasn't a strong central government

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In reply to comment: Anarchy? (see in situ)

because their wasn't a strong central government

that couldn rake in taxes or tax personal income. A central government without its slaves is anarchistic.
But really, it probably has to do with his idea that the least government is anarchistic. His idea is based on his thoughts that no government is anarchy and it progresses from anarchy to dictatorship/fascism etc depending on the size and scope of the ruling class.
I don't know where rule of law comes into it. A people can get together and make laws amongst themselves and everyone governs themselves under such rules.
I would think it rare, though, that a group of any kind would not eventually have its so-called leaders. Some people are naturally more 'can-do' and 'involved' in the workings of a group while others prefer to sit back and be left alone. Strong personalities usually win out.

If Tyranny and Oppression come to this land, it will be in the guise of fighting a foreign enemy.
James Madison