How is the Wizarding World seperated from the Muggle World?
The International Statute of Wizarding Secrecy establishes that the Ministry of Magic must hide the presence of the magical community from unrelated parties (Muggles with no connection whatsoever).
This, however, doesn't mean that Wizards are isolated from the Muggle community. They just can't reveal the existence of the magical world.
Some families have lived in areas with Muggle presence. Most notably, the Black family in Grimmauld Place. Another example would be Privet Drive (the cat lady is a squib).
Like in wizarding world they are living in the same states as in the
muggle world
Yes, nothing stops wizards from living among muggles.
So where is those places that exist in the wizarding world.
Some of them are:
- Grimmauld Place : Black family
- Little Hangleton : The Gaunts (slightly away, I think, but close enough for Muggles to notice them)
- Privet Drive : The squib lady
- Shell Cottage : Bill and Fleur's place, supposedly outside/near of Teignmouth.
And finally, remember that the Muggle prime minister has Wizard contacts. But who's gonna believe that guy?