Theocracy

Theocracy or ecclesiocracy is a form of government in which a deity is the source from which all authority derives. 
The Oxford English Dictionary has this definition:
A form of government in which God (or a deity) is recognized as the king or immediate ruler, and his laws are taken as the statute-book of the kingdom, these laws being usually administered by a priestly order as his ministers and agents; hence (loosely) a system of government by a sacerdotal order, claiming a divine commission; also, a state so governed
In some religions, the ruler, usually a king, was regarded as the chosen favorite of God (or gods) who could not be questioned, sometimes even being the descendant of, or a God in their own right. Today, there is also a form of government where clerics have the power and the supreme leader could not be questioned in action. From the perspective of the theocratic government, "God himself is recognized as the head" of the state, hence the term theocracy, from the Koine Greek θεοκρατία "rule of God", a term used by Josephus for the kingdoms of Israel and Judah. Taken literally or strictly, theocracy means rule by God or Gods and refers primarily to an internal "rule of the heart", especially in its biblical application. The common, generic use of the term, as defined above in terms of rule by a church or analogous religious leadership, would be more accurately described as an ecclesiocracy.
In a pure theocracy, the civil leader is believed to have a personal connection with the civilization's religion or belief. For example, Moses led the Israelites
While, in theocracy many aspects of the holy book are overshadowed by material powers. Due to be considered divine, the regime entitles itself to interpret verses to its own benefit and abuse them out of the context for its political aims. An ecclesiocracy, on the other hand, is a situation where the religious leaders assume a leading role in the state, but do not claim that they are instruments of divine revelation. For example, the prince-bishops of the European Middle Ages, where the bishop was also the temporal ruler. Such a state may use the administrative hierarchy of the religion for its own administration, or it may have two 'arms' — administrators and clergy — but with the state administrative hierarchy subordinate to the religious hierarchy. The papacy in the Papal States occupied a middle ground between theocracy and ecclesiocracy, since the pope did not claim he was a prophet who received revelation from God and translated it into civil law.
Religiously endorsed monarchies fall between these two poles, according to the relative strengths of the religious and political organs.
Theocracy is distinguished from other, secular forms of government that have a state religion, or are influenced by theological or moral concepts, and monarchies held "By the Grace of God". In the most common usage of the term, some civil rulers are leaders of the dominant religion (e.g., the Byzantine emperor as patron and defender of the official Church); the government proclaims it rules on behalf of God or a higher power, as specified by the local religion, and divine approval of government institutions and laws. These characteristics apply also to a caesaropapist regime. The Byzantine Empire however was not theocratic since the patriarch answered to the emperor, not vice versa; similarly in Tudor England the crown forced the church to break away from Rome so the royal (and, especially later, parliamentary) power could assume full control of the now Anglican hierarchy and confiscate most church property and income.
Secular governments can also co-exist with a state religion or delegate some aspects of civil law to religious communities. For example, in Israel marriage is governed by officially recognized religious bodies who each provide marriage services for their respected adherents, yet no form of civil marriage (free of religion, for atheists, for example) exists nor marriage by non-recognized minority religions.
=== Etymology ===
The word theocracy originates from the Greek θεοκρατία meaning "the rule of God". This in turn derives from θεός (theos), meaning "god", and κρατέω (krateo), meaning "to rule." Thus the meaning of the word in Greek was "rule by god(s)" or human incarnation(s) of god(s).
The term was initially coined by Flavius Josephus in the first century A.D. to describe the characteristic government of the Jews. Josephus argued that while mankind had developed many forms of rule, most could be subsumed under the following three types: monarchy, oligarchy, and democracy. The government of the Jews, however, was unique. Josephus offered the term "theocracy" to describe this polity, ordained by Moses, in which God is sovereign and his word is law.
Josephus' definition was widely accepted until the Enlightenment era, when the term started to collect more universalistic and negative connotations, especially in Hegel's hands. The first recorded English use was in 1622, with the meaning "sacerdotal government under divine inspiration" (as in Biblical Israel before the rise of kings); the meaning "priestly or religious body wielding political and civil power" is recorded from 1825.
=== micronations that have a Theocracy: ===
*Templar Kingdom