This is an interesting one. Jane Smith, who writes the excellent How Publishing Really Works blog (which I’ve had as a link here for some time now, and is essential reading), has set up a collaborative work of fiction entitled Greyling Bay. The idea is that contributors write short, self-contained fragments, all based around the fictional town of Greyling Bay, that knit together into a patchwork whole (if that isn’t mixing too many metaphors). There are some quite big hitters amongst the contributors already.
Oh, and I’m in there too, with this piece, which grew out of something I’d done as part of a flash fiction exercise last year. I liked it, but I couldn’t work out what the hell to do with it, until I realised that it might work well as part of Greyling Bay. So there it is.