Related to Dungeon Generation, City Generation is the process of creating a city like environment through PCG techniques. City Generation features less frequently in games with procedural content, with Subversion being the obvious exception. The writers of CityEngine have a number of papers on the topic available in external links below.
PCG Wiki References
Procedural Modelling of Buildings - Pascal Müller, Peter Wonka, Simon Haegler, Andreas Ulmer and Luc Van Gool.
Procedural Modelling of Cities - Yoav I H Parish and Pascal Müller: The paper much of the Subversion city generator is based on.
Procedural House Generation - project by Jess Martin
Realtime Generation of 'Pseudo Infinite' Cities - Stefan Greuter, Jeremy Parker, Nigel Stewart, Geoff Leach