Growing up I lived in a house in KY in the mid 80's that had running water at the kitchen sink only.
We used the privy across the dry creek at the edge of a cornfield.
Spongebaths unless we went up the road to the house of a family member.
This was NOT common anymore in that neck of the woods at the time but the rent was cheap in the old place so thats where we lived for a while.
As for the neighbors, All four kids turned out pretty successful.