It does mean “no rules”, because it means “no government”. And you don’t have to take my word for it. You can read it on wikipedia:

Anarchy is a form of society without rulers. As a type of stateless society, it is commonly contrasted with states, which are polities that claim a monopoly on violence over a permanent territory. Beyond a lack of government, it can more precisely refer to societies that lack any form of authority or hierarchy. While viewed positively by anarchists, the primary advocates of anarchy, it is viewed negatively by advocates of statism, who see it in terms of social disorder.