Building a city directly on top of a luxury resource?

You don't get the benefit from improving the tile, but you get instantaneous improvement of the luxury. Depending on the underlying tile and the point you're at in the game, it can often make sense to directly settle a luxury rather than wait five or six Worker turns to improve it.

As a rule, settling Mining tiles after the capital is a bad idea, and settling Calendar or Trapping luxuries is usually a good idea as long as the tile is positioned well. Settling Marble is often a no-brainer, since you get the Wonder bonus even if you haven't researched Masonry yet.
 
You still have to have researched the tech required to gain access to the resource. If you are in desperate need of happiness, build the city on the resource.
 
If I were to settle on an Incense or Wine is the tile considered 'worked' for the purposes of building a monastery? Or Gold/Silver fro mint?
 
...Settling Marble is often a no-brainer, since you get the Wonder bonus even if you haven't researched Masonry yet.

Thanks! I didn't know that.
 
If I were to settle on an Incense or Wine is the tile considered 'worked' for the purposes of building a monastery? Or Gold/Silver fro mint?

I would think so but I can't say for certain. I've only built a city on a resource once and it was Spices.
 
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