Expanding on PF's explanation -- certain city improvements (factories, coal plants, etc.) cause pollution -- they generate a specific number of "pollution triangles" that appear in your city view screen in the lower left (below the luxuries). Additionally, each population point above 12 creates one "pollution triangle." The pollution triangles represent the probability that a random city radius tile will be hit by pollution each turn -- more triangles = more likely to get hit with pollution in that city.
Mass Transit System (available with Ecology) eliminates all but one of the pollution triangles caused by population. Recycling Centers (available with Recycling) eliminates all but one of the pollution triangles caused by city improvements. So, with both MTS and RC, a city could be size 40, with every possible polluting improvement and still have only 2 pollution triangles. Meanwhile, a city without a MTS could be pop 15 and have 3 pollution triangles.
Catt