Index: server/settings.c
===================================================================
--- server/settings.c	(revision 12294)
+++ server/settings.c	(working copy)
@@ -787,6 +787,15 @@
               "on the surrounding terrain."),
            NULL, GAME_DEFAULT_NATURALCITYNAMES)
 
+  GEN_BOOL("dynamicsizepenalty", game.info.dynamic_size_penalty,
+           SSET_RULES_FLEXIBLE, SSET_SOCIOLOGY, SSET_RARE, SSET_TO_CLIENT,
+           N_("Dynamically raise happiness penalty based on empire size"),
+           N_("If enabled, the happiness penalty normally induced when "
+	      "empire reaches given size is further raised as the empire "
+              "goes on raising the size. The particular size steps is "
+	      "dependent on ruleset definition of your current government."),
+           NULL, GAME_DEFAULT_DYNAMICSIZEPENALTY)
+
   /* Meta options: these don't affect the internal rules of the game, but
    * do affect players.  Also options which only produce extra server
    * "output" and don't affect the actual game.
Index: common/packets.def
===================================================================
--- common/packets.def	(revision 12294)
+++ common/packets.def	(working copy)
@@ -450,6 +450,7 @@
   UINT16 base_incite_cost;
   UINT8 base_tech_cost;
   UINT16 ransom_gold;
+  BOOL dynamic_size_penalty;
 
   UINT8 save_nturns;
   UINT8 save_compress_level;
Index: common/city.c
===================================================================
--- common/city.c	(revision 12294)
+++ common/city.c	(working copy)
@@ -1424,6 +1424,9 @@
   int basis = get_player_bonus(pplayer, EFT_EMPIRE_SIZE_BASE);
   int step = get_player_bonus(pplayer, EFT_EMPIRE_SIZE_STEP);
 
+  if (!game.info.dynamic_size_penalty)
+    step = 0;
+
   if (basis + step <= 0) {
     return content; /* Value of zero means effect is inactive */
   }
Index: common/packets_gen.c
===================================================================
--- common/packets_gen.c	(revision 12294)
+++ common/packets_gen.c	(working copy)
@@ -3362,7 +3362,7 @@
 
 #define cmp_packet_game_info_100 cmp_const
 
-BV_DEFINE(packet_game_info_100_fields, 105);
+BV_DEFINE(packet_game_info_100_fields, 106);
 
 static struct packet_game_info *receive_packet_game_info_100(struct connection *pc, enum packet_type type)
 {
@@ -4072,7 +4072,8 @@
       real_packet->ransom_gold = readin;
     }
   }
-  if (BV_ISSET(fields, 98)) {
+  real_packet->dynamic_size_penalty = BV_ISSET(fields, 98);
+  if (BV_ISSET(fields, 99)) {
     {
       int readin;
     
@@ -4080,7 +4081,7 @@
       real_packet->save_nturns = readin;
     }
   }
-  if (BV_ISSET(fields, 99)) {
+  if (BV_ISSET(fields, 100)) {
     {
       int readin;
     
@@ -4088,10 +4089,10 @@
       real_packet->save_compress_level = readin;
     }
   }
-  if (BV_ISSET(fields, 100)) {
+  if (BV_ISSET(fields, 101)) {
     dio_get_string(&din, real_packet->start_units, sizeof(real_packet->start_units));
   }
-  if (BV_ISSET(fields, 101)) {
+  if (BV_ISSET(fields, 102)) {
     {
       int readin;
     
@@ -4099,7 +4100,7 @@
       real_packet->num_teams = readin;
     }
   }
-  if (BV_ISSET(fields, 102)) {
+  if (BV_ISSET(fields, 103)) {
     
     {
       int i;
@@ -4113,7 +4114,7 @@
       }
     }
   }
-  if (BV_ISSET(fields, 103)) {
+  if (BV_ISSET(fields, 104)) {
     
     for (;;) {
       int i;
@@ -4129,7 +4130,7 @@
       }
     }
   }
-  if (BV_ISSET(fields, 104)) {
+  if (BV_ISSET(fields, 105)) {
     
     for (;;) {
       int i;
@@ -4600,21 +4601,25 @@
   if(differ) {different++;}
   if(differ) {BV_SET(fields, 97);}
 
+  differ = (old->dynamic_size_penalty != real_packet->dynamic_size_penalty);
+  if(differ) {different++;}
+  if(packet->dynamic_size_penalty) {BV_SET(fields, 98);}
+
   differ = (old->save_nturns != real_packet->save_nturns);
   if(differ) {different++;}
-  if(differ) {BV_SET(fields, 98);}
+  if(differ) {BV_SET(fields, 99);}
 
   differ = (old->save_compress_level != real_packet->save_compress_level);
   if(differ) {different++;}
-  if(differ) {BV_SET(fields, 99);}
+  if(differ) {BV_SET(fields, 100);}
 
   differ = (strcmp(old->start_units, real_packet->start_units) != 0);
   if(differ) {different++;}
-  if(differ) {BV_SET(fields, 100);}
+  if(differ) {BV_SET(fields, 101);}
 
   differ = (old->num_teams != real_packet->num_teams);
   if(differ) {different++;}
-  if(differ) {BV_SET(fields, 101);}
+  if(differ) {BV_SET(fields, 102);}
 
 
     {
@@ -4630,7 +4635,7 @@
       }
     }
   if(differ) {different++;}
-  if(differ) {BV_SET(fields, 102);}
+  if(differ) {BV_SET(fields, 103);}
 
 
     {
@@ -4646,7 +4651,7 @@
       }
     }
   if(differ) {different++;}
-  if(differ) {BV_SET(fields, 103);}
+  if(differ) {BV_SET(fields, 104);}
 
 
     {
@@ -4662,7 +4667,7 @@
       }
     }
   if(differ) {different++;}
-  if(differ) {BV_SET(fields, 104);}
+  if(differ) {BV_SET(fields, 105);}
 
   if (different == 0 && !force_send_of_unchanged) {
     return 0;
@@ -4946,19 +4951,20 @@
   if (BV_ISSET(fields, 97)) {
     dio_put_uint16(&dout, real_packet->ransom_gold);
   }
-  if (BV_ISSET(fields, 98)) {
+  /* field 98 is folded into the header */
+  if (BV_ISSET(fields, 99)) {
     dio_put_uint8(&dout, real_packet->save_nturns);
   }
-  if (BV_ISSET(fields, 99)) {
+  if (BV_ISSET(fields, 100)) {
     dio_put_uint8(&dout, real_packet->save_compress_level);
   }
-  if (BV_ISSET(fields, 100)) {
+  if (BV_ISSET(fields, 101)) {
     dio_put_string(&dout, real_packet->start_units);
   }
-  if (BV_ISSET(fields, 101)) {
+  if (BV_ISSET(fields, 102)) {
     dio_put_uint8(&dout, real_packet->num_teams);
   }
-  if (BV_ISSET(fields, 102)) {
+  if (BV_ISSET(fields, 103)) {
   
     {
       int i;
@@ -4968,7 +4974,7 @@
       }
     } 
   }
-  if (BV_ISSET(fields, 103)) {
+  if (BV_ISSET(fields, 104)) {
   
     {
       int i;
@@ -4984,7 +4990,7 @@
       dio_put_uint8(&dout, 255);
     } 
   }
-  if (BV_ISSET(fields, 104)) {
+  if (BV_ISSET(fields, 105)) {
   
     {
       int i;
Index: common/packets_gen.h
===================================================================
--- common/packets_gen.h	(revision 12294)
+++ common/packets_gen.h	(working copy)
@@ -198,6 +198,7 @@
   int base_incite_cost;
   int base_tech_cost;
   int ransom_gold;
+  bool dynamic_size_penalty;
   int save_nturns;
   int save_compress_level;
   char start_units[MAX_LEN_STARTUNIT];
Index: common/game.h
===================================================================
--- common/game.h	(revision 12294)
+++ common/game.h	(working copy)
@@ -252,6 +252,8 @@
 
 #define GAME_DEFAULT_NATURALCITYNAMES TRUE
 
+#define GAME_DEFAULT_DYNAMICSIZEPENALTY TRUE
+
 #define GAME_DEFAULT_AQUEDUCTLOSS    0
 #define GAME_MIN_AQUEDUCTLOSS        0
 #define GAME_MAX_AQUEDUCTLOSS        100
Index: ai/aicity.c
===================================================================
--- ai/aicity.c	(revision 12294)
+++ ai/aicity.c	(working copy)
@@ -358,8 +358,9 @@
       if (city_list_size(pplayer->cities) 
 	  > get_player_bonus(pplayer, EFT_EMPIRE_SIZE_BASE)) {
 	if (get_player_bonus(pplayer, EFT_EMPIRE_SIZE_BASE) > 0) {
-	  factor += city_list_size(pplayer->cities) 
-	    / MAX(get_player_bonus(pplayer, EFT_EMPIRE_SIZE_STEP), 1);
+	  factor += city_list_size(pplayer->cities);
+          if (game.info.dynamic_size_penalty)
+	    factor /= MAX(get_player_bonus(pplayer, EFT_EMPIRE_SIZE_STEP), 1);
 	}
 	factor += 2;
       }
Index: client/gui-gtk-2.0/happiness.c
===================================================================
--- client/gui-gtk-2.0/happiness.c	(revision 12294)
+++ client/gui-gtk-2.0/happiness.c	(working copy)
@@ -234,7 +234,7 @@
   int penalty = 0;
 
   if (excess > 0) {
-    if (step > 0)
+    if (step > 0 && game.info.dynamic_size_penalty)
       penalty = 1 + (excess - 1) / step;
     else
       penalty = 1;
@@ -245,7 +245,7 @@
 
   my_snprintf(bptr, nleft,
 	      _("Cities: %d total, %d over threshold of %d cities.\n"),
-	      cities, excess, basis);
+	      cities, excess, basis, game.info.dynamic_size_penalty);
   bptr = end_of_strn(bptr, &nleft);
 
   my_snprintf(bptr, nleft, _("%d content before penalty with "), content);
Index: client/gui-win32/happiness.c
===================================================================
--- client/gui-win32/happiness.c	(revision 12294)
+++ client/gui-win32/happiness.c	(working copy)
@@ -183,7 +183,7 @@
   int penalty = 0;
 
   if (excess > 0) {
-    if (step > 0)
+    if (step > 0 && game.info.dynamic_size_penalty)
       penalty = 1 + (excess - 1) / step;
     else
       penalty = 1;
Index: client/helpdata.c
===================================================================
--- client/helpdata.c	(revision 12294)
+++ client/helpdata.c	(working copy)
@@ -1330,9 +1330,10 @@
  	              " cities.\n"), peffect->value);
         break;
       case EFT_EMPIRE_SIZE_STEP:
-        sprintf(buf + strlen(buf), _("* After the first unhappy citizen "
-                "due to civilization size, for each %d additional cities, "
-                "another unhappy citizen will appear.\n"), peffect->value);
+	if (game.info.dynamic_size_penalty)
+          sprintf(buf + strlen(buf), _("* After the first unhappy citizen "
+                  "due to civilization size, for each %d additional cities, "
+                  "another unhappy citizen will appear.\n"), peffect->value);
         break;
       case EFT_MAX_RATES:
         if (peffect->value < 100 && game.info.changable_tax) {