This family’s home located in Chongqing, central China, was left standing on its own island as the family refused to move out.
It all started when they refused to accept compensation to move and, while the row rumbled on, the bulldozers excavated the site around them. Rumoured to have government connections, the family is not expected to be forced out.Link
Update 4/3/07: Seems like the house has finally been demolished: Link - Thanks Joe Hasting!
I similar situation happened in my home town years ago after they legalized gambling. The city promised a casino land that it hadn't yet acquired. There was a business located there and they guy refused to move. The casino ended up having to build a walkway that went over his land.