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Yes that Piltovers fault, the fact no one decided to build a government in all that time. Vander using his position could have. I'm fact he's the only thing allowing merchants to do business if we use episode one as an example. It's not like Piltover really cares and he made deals on behalf of everyone already.
You cannot build a government when you're being occupied by someone else, or are a province of someone else.
Like, a key part of government is a monopoly on force. If Piltover holds a monopoly of force in Zaun, then by definition nobody in Zaun can. Any Zaunite government trying to use force to enforce it's own laws (like say, "don't assault people") would then be running afoul of Piltover's laws when it tried to enforce them.
You're simultaneously holding that Zaun is legitimately part of Piltover and that it's somehow been actually independent this whole time. You can't have it both ways - if Piltover does rule Zaun then they can't build their own government, and Piltover has been horribly oppressive to Zaun so revolution is justified. If Piltover does not rule Zaun then sending their armed forces in Zaun is an invasion and throwing them out is justified.
For what it's worth, both Vander and Silco do form some level of shadow government which fulfills some of it's functions - Vander ensures deals in the last drop are honored, Silco forms a council of the Chembarons.
And a bit of an aside, but Vander's Lanes is absolutely a criminal operation too. The primary purpose of the Last Drop is likely to have a place in which deals for smuggled and stolen goods can be expected to be honored, with (and the other patrons who all benefit from an expectation that deals will be honored) essentially acting as the insurance that deals are honored, and then he presumably gets a cut in the form of patronage to his bar. Oh and Benzo is straight up a fence. And for all we know Zaun does have worker's councils and town meetings and stuff, it's just that none of that can be a full government if Piltover enforcers can come into Zaun and beat people up without repercussions. This is kind of a study in how Zaun cannot actually form a government without actual independence.
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