India and Nepal have had free movement of people starting back in 1950. According to the treaty, there are are almost no restrictions on visiting, buying property, opening a company, etc. Foreign citizens aren't included in the scope of the agreement and the two countries remain fully separate in the eyes of most tourists.
The border between Vatican City and Italy is not 100% open - you can technically get a visa to visit the Vatican, but not Italy. Likewise Schengen countries sometimes issue Limited Territorial Validity visas, which are only accepted in one country. The border between the UK and Ireland is also not 100% open - each country issues it's own national visas, which aren't always accepted in the neighbouring country.
Similarly Canadians can only stay up to 180 days in the US, unless they extend their visa. Neither are Canadian/US tourist visas mutually recognized, nor is there a right to free movement between the two states. Nevertheless it's the longest undefended border in the world.