I saw the following description and thought that it might be the sort of village that Jeri was referring to.

Deep in the Peak District, towards the north of England, is the village of Royston Vasey, a seemingly picturesque spot but one populated by dangerous lunatics, social misfits, sinister grotesques and psychopaths. A sign reads 'Welcome to Royston Vasey. You'll Never Leave!'

http://www.bbc.co.uk/comedy/guide/articles/l/leagueofgentleme_66602120.shtml

You are right - there is nothing like this village in Dorset...Thankfully.