Kaj_Sotala comments on Open thread, Jan. 25 - Jan. 31, 2016 - Less Wrong Discussion
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Cities are where they are because of actual reasons of geography, not just people plopping things down randomly on a map. You need to get stuff into them, stuff out of them, have the requisite power and water infrastructure to get to them (ESPECIALLY in California)... they aren't something you plop down randomly on a whim.
Also, previous attempts at doing exactly this have only had modest success: