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Way more than that: landfills, dump toxic sludge in lakes, burn everything, etc. It will all create massive amounts of pollution 

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how will it be handled? I already bought the game at A4, so  no rush on a rpely, just likeing the ideas.
Also is there  to be collision and traffic issues?

Not completely designed, but just know that every building will produce some kind of pollution (water, ground or air). As for traffic: coming in A6

Take a look at this: