Aunt trying to take over DD

[Tangoes]

We live with OH's parents who are great.Next door lives his aunt whose child died.I used to find her fine but recently have had issues with her trying to take over with DD who is two.She is quite over the top and is constantly trying to distract DD and get her attention.She also goes against my wishes in relation to her upbringing.I'm now at the stage where DD keeps calling her name and sees her as some type of playmate whereas I'm the strict one.
We had a falling out a few weeks ago and currently don't speak.I apologized but all she said was in her culture the elders help with things and I said I don't need help from her.She is still forever calling out to DD and DD goes running to her.
I live in a Mediterranean country where children are treated like mini God's and where families live in each others pockets.
Does it look like I am jealous? I am still breastfeeding DD probably just to have that closeness with her.
Aibu in wanting to move away?

Yanbu. Can you get your own house?

Do you live in Cyprus by any chance OP?

In my culture families are very involved in each other’s lives and help lots with children. But I have my own boundaries and eventually they are respected. You and your OH need to put on a united front and explain that going against your wishes is not ok. You need to bring up your daughter how you see fit. If everything else is good I wouldn’t move though. Maybe get your in laws to have a word. You might not be the most popular but they’ll get over it.

I would hate this. YANBU.

This type of family interaction is pretty common in Greece. Elders, almost inevitably women, are very involved in child rearing and their views are highly respected. It is difficult to reconcile this with the idea that parents make decisions about and bear the burden of bringing up children. Children are also extremely indulged and kept quite dependent as they grow up which again clashes with other cultural approaches.

Where is your OH in all this? He needs to have a word but it won’t go down well. Expect extreme drama.

Move further away. It's the best solution.

Thank you all so much for your views.I've been away for a few days so apologies for the delay in responding.
No, I don't live in Cyprus although it's a beautiful country.
We are going to buy a house early next year so it would be more practical and convenient to stay where we are for the time being plus we'll be away travelling for Xmas and new year.
I've asked my OH to get MIL to speak to her sister.This may help soften the blow or I may end up the baddie in all of this.At this stage I don't care.
Thanks again for your help