I build it as soon as i feel i can afford it and when i have my city planning ready.
Where to build it depends on how you build it.
A: with a great leader.
If you have a great leader, the perfect place would be a city ~70% corrupt, surrounded by cities that are say 50-60% corrupt and at some distance from the capital.
B: hand build.
A city with low corruption so that you can bulid it fast. Surrounded by cities 50-60% corrupt at some distance from the capital.
I will now include an example picture:
In this picture, i numbered the towns according to their corruption rank. It is a std. size map emperor level.
The corruption gradually increases by about 5% per city rank here. City 12 and 13 are around the 50% corruption mark.
City 6 in this picture is very obviously the right place to handbuild the FP. This will reduce the corruption by distance for towns 12,14,15,16,17 These are exactly the cities in the corruption range that need help. City 6 is good enough to be able to hand build it.
If i would build it with a leader however, i would rush the FP in city 15. In here it would almost totally eliminate the corruption in city 15 and it would reduce the distance for 16 and 17 even more. Under republic on std size map, cities 14-17 are the ones you should aim to help with the FP. Cities beyond 17 are too corrupt and will be ICS land. On higher difficulty levels, lower this number by maybe 2 cities per difficulty level.
Btw, notice that in this picture, i do not build anymore cities closer to my capital than city 17. Looking back, i even regret building city 13 as it does not recieve help from the FP, it is corrupt and it increases the rank for those cities around the FP.
PS: this is spoiler info for my opponent in this PBEM, but that doesn't matter anymore at the point where we stand in this game. And for those that look at too many details: no i am not god who builds such an empire at 925BC, we started with 2 settlers, 3 workers and 4 food boni.
Oh and another edit:
I am assuming everyone knows how the FP now works, but i'll explain anyway.
The ranks for the cities do not change. the ranks do not change when you build the FP. So you see the ranks here 1-17, they remain the same. The FP in C3C only reduces the distance corruption and increaes OCN (wich is the same as reducing rank corruption in every city by 25% i believe) It is however important not to build cities closer to the capital than those that you intend to actually make productive as that would increase the rank for other cities.