Yes. This is what it does, as far as I understand:
You have 30 cities. The game will build the city mentioned as capital first, let's say it is city number 1 on the list. Next, when, you found another city, the game will build one city from 2 to 11. If it builds city number 2, then your next city will be from 3 to 12. If not, it will keep building cities up to number 11 until city number two is built.
In other words: city number 1 unlocks city number 11, cities 1 and 2 unlock city number 12, cities 1, 2, 3, 4 and 5 unlock city number 15 as an option. So in order to get to city number 30 as an option, you need to have built all cities from 1 to 19 on the city list.