"It's too crowded!"

there is really no immediate fix for this. I would suggest,

1] Make sure all resources/luxuries tiles are improved by workers. A simple plantation/winery/etc on a luxury resource can give you some help. If your don't have any within your borders try to trade for some luxuries that will benefit the situation, but don't go overboard make sure you get a good deal and not ripped off.

2] Build city buildings. Get construction and build a colissuem, or research drama and build a theatre. In combination with #1 you can build buildings that add to the effectivness of your luxuries and resources.

3] Try to bring multiple religions into a city. having more then one will allow you to build more temples and monestarys and stuff like that.

4] Switch your civics around. Early in the game if I find this a big enough problem I'll switch up to Hereditary Rule. 1+ Happy per military unit stationed in the city.

You have a lot of options, pick one that would best suit your plans for a later victory.
 
Build theatres and then make sure you make a lot of money - raise your culture rate.
 
whipe the population... they may not be happy, but it will be less crowded.

EXPAND! i alway expand if its possible..
 
To add to the post above, whip if you can build something that needs 2 pop points. There are several threads discussing the fine points of whipping for production, but the key thing here is if you whip for only one pop point, you take away one unhappy face for "It's too crowded!" but you add one unhappy for "We cannot forget your cruel oppresion!" for 10 turns. Then the city is now one pop point smaller, but still net unhappy so all you managed was to reduce your working population size by one point for 10 turns! So make sure you get rid of at least 2 points in a whip if the city is unhappy to begin with.

Obviously, if the city is very very happy, you can absorb those extra unhappy faces, but then you wouldn't have the situation described in this thread.
 
Just wondering something about culture and theatre's - If you've got a high income will you get more than 1 happiness per 10%?
 
No, the happy faces from culture only depend on the relative amount you are spending.
Btw: You don't need a theatre to increase happiness.
10% culture will give you one happy face in every city and 2 happy faces in ciities with theatres.
 
Just to explain why you get the "Its too crowded" message..

This is the built in game mechanic - it is a happiness limit. No matter what every single pop point of your city automatically generates 1 unhappy face. Depending on the difficulty level you are playing at, you start with a certain number of happy faces. As long as the happy faces are greater than or equal to the unhappy faces you are fine.

Certain things cause additional unhappiness such as war weariness, foreign citizens, demand for emancipation, etc. And certain things cause additional happiness such as religion, certain buildings, and the other things mentioned in this thread. You can deal with unhappiness in two ways:

1)Cancel it out with happiness
2)Elliminate the source of the unhappiness

Both ways are valid for most types of unhappiness. For example: war weariness unhappiness can be canceled out by raising the culture slider or trading for a resource you don't have or it can be elliminated by ending the war. BUT with "It's too crowded" unhappiness you can generally can only cancel it out. You can only elliminate it by lowering your population!
 
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