This is the Wilmarth School -- and it was actually an elementary school until 1991. Around that time, the Wisconsin school district decided to consolidate its elementary schools and sell off the old schoolhouses for cheap.
That's where sisters Luci and Lydia Daum stepped in ...
Luci and Lydia live and work out of what they call "Chateau Wilmarth." They own their own company Party in My Pants (selling eco-friendly, cloth pads "for the princess on her period"). All of the designing and sewing happens in their schoolhouse studio. The sisters also rent the rooms of the schoolhouse -- which are 1,000 sq. feet and have been turned into little studios, complete with kitchens.
We're unbelievably jealous. It looks like the most creative, inspiring, and ridiculously fun place to live.
Read more about the wonderful ladies behind the magic at Design*Sponge.
And ... buy a few cloth pads at Party in My Pants.
(Thanks to Elka for the tip!)