Increase the game speed and watch the settlers come rolling in. As they do, you will see your city's population number (upper right corner of screen) increase. This number doesn't really do you much good. What you need to know is the number of workers. You can find this out by hitting the "1" key from time to time. Doing so will open the Labor Advisor Panel from which you can find out the actual number of unemployed.
As the people come in, keep your eyes on the prefecture. Since it has the highest priority of any building on the board, it should be operational first. You know this when the little red flag starts fluttering on the roof.
Now - hit the "f" key. This will open up the fire overlay and you can watch the prefect as he leaves the prefecture and hits the road. Watch as he passes each building, a column should appear on each plot. This indicates the fire protection left to this plot. You can see it gradually decrease as the prefect patrols the rest of the block. When he passes the building again, the column is restored to it's greatest height. This is the walker system in action and you should clearly understand how this works. If you hit the damage key "d" you will see the engineer doing the same thing.
Restore the screen by hitting the spacebar. After awhile the immigrants should stop coming in and all your housing plots should have a tent on them.
If you have heeded my advice and printed out the housing level table. You will know what the population of these tents is and what these folks are going to want next. If not, right-click on the tents.
Maximun Population per Square = 5
Prosperity Cap = 5
Next step is to evolve to large tents