- factory annoys enough people
- people are anarchist and have no respect for law
- people are not living buddhas and have finite patience

- multiple attempts at settling the issue by negotiation fail
- some neigbours move away to undisclosed locations, some of them rather pissed off
- somebody spray-paints "sabotage?" on a nearby wall
- somehow, the factory keeps losing power and water supply, roads keep getting sowed with tire-breaking scrap metal, equipment accumulates damage

- factory continues to annoy enough people
- somebody spray-paints "BtFD" on a nearby wall
- somebody interprets it as "Burn the Factory/Fucker Down" and does so
- zoning laws?

Edit: P.S.

Two alternative laws:

- there are no fixed laws
- perhaps it's worth the effort to behave reasonably? :D