diff -ru -X /home/jjm/cvs/no.freeciv FreecivCVS/common/city.h freeciv/common/city.h
--- FreecivCVS/common/city.h	Thu Feb 10 09:43:33 2000
+++ freeciv/common/city.h	Sun Mar 12 12:39:23 2000
@@ -86,12 +86,13 @@
 #define CITY_MAP_SIZE 5
 
 
+/* Iterate a city map */
 
 #define city_map_iterate(x, y) \
   for (y=0;y<CITY_MAP_SIZE;y++) \
     for (x=0;x<CITY_MAP_SIZE;x++) \
-      if (! ((x == 0 || x == 4) && (y == 0 || y == 4)))
-
+      if (! ((x == 0 || x == (CITY_MAP_SIZE-1)) && \
+	     (y == 0 || y == (CITY_MAP_SIZE-1))) )
 
 /* Iterate a city map, from the center (the city) outwards */
 
@@ -110,6 +111,14 @@
     y = city_map_iterate_outwards_indices[city_map_iterate_outwards_index][1];
 
 #define city_map_iterate_outwards_end } }
+
+/* Iterate a city radius: (dx,dy) centered on (0,0) */
+
+#define city_radius_iterate(dx, dy) \
+  for (dy=-(int)(CITY_MAP_SIZE/2);dy<(int)(CITY_MAP_SIZE/2);dy++) \
+    for (dx=-(int)(CITY_MAP_SIZE/2);dx<(int)(CITY_MAP_SIZE/2);dx++) \
+      if (! ((dx == -(int)(CITY_MAP_SIZE/2) || dx == (int)(CITY_MAP_SIZE/2)) && \
+	     (dy == -(int)(CITY_MAP_SIZE/2) || dy == (int)(CITY_MAP_SIZE/2))) )
 
 
 
diff -ru -X /home/jjm/cvs/no.freeciv FreecivCVS/server/settlers.c freeciv/server/settlers.c
--- FreecivCVS/server/settlers.c	Wed Jan  5 12:39:56 2000
+++ freeciv/server/settlers.c	Sun Mar 12 12:35:09 2000
@@ -14,6 +14,7 @@
 #include <string.h>
 #include <assert.h>
 
+#include "city.h"
 #include "game.h"
 #include "government.h"
 #include "log.h"
@@ -49,6 +50,8 @@
 static int is_already_assigned(struct unit *myunit, struct player *pplayer, 
 			       int x, int y);
 
+static int city_exists_within_city_radius(int x, int y);
+
 /**************************************************************************
 ...
 **************************************************************************/
@@ -1043,7 +1046,8 @@
 	    && map_get_terrain(x, y) != T_OCEAN
 	    && (territory[x][y]&(1<<player_num))
 				/* pretty good, hope it's enough! -- Syela */
-            && (near < 8 || map_get_continent(x, y) != ucont)) {
+            && (near < 8 || map_get_continent(x, y) != ucont)
+	    && !city_exists_within_city_radius(x,y)) {
 
 	  /* potential target, calculate mv_cost: */
           if (ferryboat) {
@@ -1428,4 +1432,23 @@
     unit_list_iterate_end;
     pcity->ai.founder_want = want;
   }
+}
+
+/**************************************************************************
+Return true iff a city exists within a city radius of the given location.
+(Not including a city at the given location.  I.e., if only city within
+radius is at (x,y), then returns false.)
+**************************************************************************/
+int city_exists_within_city_radius(int x, int y)
+{
+  int dx, dy;
+
+  city_radius_iterate(dx, dy) {
+    if (!(dx==0 && dy==0)) {
+      if (map_get_city(x+dx, y+dy))
+	return 1;
+    }
+  }
+
+  return 0;
 }