Squalor is capped at a 100% relative rate for version 1.2. If you are playing an earlier version, there is no cap. Squalor cannot be eliminated, you just treat its symptoms. Here are the things you can do:
1. Control population growth. Squalor increases in direct proportion to pop growth. If a city has reached the 24K level, there is no need to grow it further and you should manage it for zero growth or slight population decline.
2. Don't build advanced farm upgrades. These boost population growth levels and cannot be destroyed.
3. Don't build fertility temples which boost population.
4. Carefully examine the VnVs of your governors. Some governors have nasty traits which significantly increase squalor. Others have good traits which reduce it. The good trait governor is the only real way squalor can ACTUALLY be reduced. Such governors are rare.
5. Build the health upgrades available to your city. This doesn't reduce squalor, but it keeps up happiness which would fall as a result of squalor otherwise.
6. Use taxes and games to keep up public order.
7. Make maximum use of garrisons. Garrisons can raise order by a total of 80% plus whatever value you can get of units in the queue, even if they won't be allowed to stay in the city.
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