I must've missed the part of the article where she was told that she had to hook up to the city power grid (hint: she wasn't, her solar panels aren't an issue). And you must've missed the part where the city admitted that they cannot force her to actually use the water system.
It's pretty simple - use of the city sewer is part of the city water system bill, therefore she's mooching use of the public sewer service off her neighbors' water payments. Unless she can shoehorn a septic tank and tile field onto her property, it looks like she's bagging her raw sewage - until they tell her it's a public health hazard (which I'm sure you'll also be screaming bloody fascism about when that story is written).
Or, you know, she could always move to a part of the world that fits her ecological views better. I always thought that was a pillar of anarchist thought, in fact.