There are places in which wizards and witches live in secret. This may or may not be inside a Muggle village, but most likely is. Or as Hermione says, "communities within a community"[1]. These include:
After the International Statute of Wizarding Secrecy was enacted in 1689, wizards and witches had to find places to live without muggles annoying them, so they made villages where they could live together in peace. The only wizard-only village is Hogsmeade which is located near Hogwarts.
Notes and references
- ↑ Harry Potter and the Deathly Hallows, Chapter 16