I'm posting this because it doesn't seem to be redundant with Stuporstar’s city placement article. Read his article first if you’re confused about the numerical values of the various terrains and improvements. Also, this article was written based on version 1.09. I won’t experience 1.52 until I get back from Christmas vacation, but I haven’t seen any references to anything that would drastically change the advice given here.
1. Basic City Placement – Resources
Food – An Army Marches on its Stomach
Believe it or not, food is the basic resource in civ. Even though food is itself quite limited as to its uses, it is the basis on which all other goods are produced. The uses of food are as follows: