I hope I'm not offending lawbar, by I think we need to sum up some more basic tactics and mechanics. Here are a couple of basic settling tips:
Terrain:
* Hills give your cities 25% defence, other terrains don't do squat. I usually ignore it since the capital is usually in the middle of the empire and if it's attacked you're probably screwed already. Still, it's an important consideration for a border city likely to see action.
* Building a city on a square with one side (not corner) being a river is huge boost. It improves your city's commerce and trade options, and more importantly opens up the brewery building option which is basically +3
Resources:
* Plan ahead. Incense can give more cash than a winery, but a winery is available as your 2nd-3rd tech or even right from start for some civs. By the time you research calendar you'll probably have more than one city. Same goes for marble and other advanced resources.
* Mana is a dead tile, by the time you can use it your cities will be far into their 3rd or 4th circle, so no need to have mana in your fat cross (the 20 tiles you can work).
* Special improvements are huge and give you bonuses right away, both in production and

Look for upgradeable ones like Patria and Ygg.
* If you grab all the resources with one city, the others will starve. If you plan on building a production city in a hilly area, leave them a food resource or it will work exactly one hill.
General:
* Water tiles are dead unless fishable, look to build coastal cities inside bays or L shaped coasts:
*****
***C*
~~~**
~~***
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* Specialize your cities before you build them. GP farms need food resource and one high production tile (plains mine or resource). Commerce cities need either a lot of luxury resources or none at all for a cottage economy. A cottage city has to have many river tiles, and at least as many floodplains as plains for food balance. Prod cities need hills and food resources or floodplains. Think ahead what tiles you'll be able to work. A tile with 2 food is free, other than that you need to have as many bread slices over 2 per tile as under so your city can grow. Not every city has to reach the happy cap though, a small production city that has 3 mines and a corn farm and is 5-6

under the cap is perfect for drafting and

inducing buildings.
* One last note: iron and copper never spawn next to food resources, so settling a city right next to one will ensure you won't accidentaly cover a precious metal with your city.