Vatican City is famous for being the smallest country in the world, both by area and population. However, its geographical situation is incredibly rare. It is an 'enclaved' sovereign city-state, meaning its territory is entirely surrounded by another city—Rome, Italy. Established by the Lateran Treaty in 1929, it covers only about 100 acres. This makes it a country within a city within a country. While San Marino is also enclaved by Italy, it is an entire region with multiple towns, whereas Vatican City is a single urban complex. This unique status allows the Pope to exercise independent sovereignty from the Italian government while being physically located in the heart of Italy's capital.