In 1936, against the background of the fight against fascism, there was a profound libertarian socialist revolution throughout Spain.
Much of Spain's economy was put under direct worker control; in anarchist strongholds like Catalonia, the figure was as high as 75%, but lower in areas with heavy Socialist influence. Factories were run through worker committees, agrarian areas became collectivized and run as libertarian communes. Even places like hotels, barber shops, and restaurants were collectivized and managed by their workers. George Orwell describes a scene in Aragon during this time period, in his book, Homage to Catalonia: [ISBN 978-0156421171, Harvest Books, Fort Washington]
I had dropped more or less by chance into the only community of any size in Western Europe where political consciousness and disbelief in capitalism were more normal than their opposites. Up here in Aragon one was among tens of thousands of people, mainly though not entirely of working-class origin, all living at the same level and mingling on terms of equality. In theory it was perfect equality, and even in practice it was not far from it. There is a sense in which it would be true to say that one was experiencing a foretaste of Socialism, by which I mean that the prevailing mental atmosphere was that of Socialism. Many of the normal motives of civilized life– snobbishness, money-grubbing, fear of the boss, etc.– had simply ceased to exist. The ordinary class-division of society had disappeared to an extent that is almost unthinkable in the money-tainted air of England; there was no one there except the peasants and ourselves, and no one owned anyone else as his master.
The communes were run according to the basic principle of "From each according to his ability, to each according to his need," without any Marxist dogma attached. In some places, money was entirely eliminated. Despite the critics clamoring for maximum efficiency, anarchic communes often produced more than before the collectivization. The newly liberated zones worked on entirely egalitarian principles; decisions were made through councils of ordinary citizens without any sort of bureaucracy. It is generally held that the CNT-FAI leadership was at this time not nearly as radical as the rank and file members responsible for these sweeping changes.
In addition to the economic revolution, there was a spirit of cultural revolution. For instance, women were allowed to have abortions, and the idea of free love became popular. In many ways, this spirit of cultural liberation was similar to that of the "New Left" movements of the 1960s.