In the UK this option is still illegal as you need permission from the council to live on your own land. I guess it's sorta similar to zones in the US? You can only stay on your land for 28 days of the year otherwise. You could probably manage a while before you get found but they can demolish anything you build there and seize the property.
In the US, we do having the concept of “residential” zoning. Though I’m thinking that applies more to the structures being built there. I’m thinking building this kind of thing and living in it might not actually be illegal? Depending on what you are doing with your waste (like piss and shit) they might get you for some kind of health code violation. But barring that I think you might be able to get away with this. (But who would want to?) Maybe someone who knows better than me can weigh in.
In the USA this is illegal too but it is mostly a health thing, eg you can't live somewhere with no place to shit because you'll end up shitting in the river. Not that "health and safety" isn't constantly abused to brutalize the indigent, but it does also kind of make sense to not let people live long term where they can't shit, knowing what we know now about outhouses and groundwater.
That said, local governments in rural areas can barely keep fire departments and schools open. Nobody is checking on your vacant land unless someone complains, and they'd have to drive past fifty other shanties to get to yours.