As a quick example for airports...
In 3do\Airfield\Concrete\
we have these five mat files:
base.mat
[ClassInfo]
ClassName TMaterial
[General]
tfDoubleSide 0
tfShouldSort 0
tfDepthOffset 1
tfDropShadow 0
tfGameTimer 1
[LightParams]
Ambient 1.0
Diffuse 1.0
Specular 0.0
SpecularPow 0
Shine 0.0
[Layer0]
TextureName AirPrtCncr_512.tga
PaletteName
Frame 0.0
VisibleDistanceNear 0.0
VisibleDistanceFar 20000.0
TextureCoordScale 0.0 0.0 1.0 1.0
ColorScale 1.0 1.0 1.0 1.0
AlphaTestVal 0.5 // of [0.1, 0.5, 0.9]
tfWrapX 1
tfWrapY 1
tfMinLinear 1
tfMagLinear 1
tfMipMap 1
tfBlend 0
tfBlendAdd 0
tfTestA 0
tfTestZ 1
tfUpDateClear 0
tfModulate 1
tfNoTexture 0
tfAnimatePalette 0
tfAnimateSkippedFrames 0
tfNoWriteZ 1
tfTranspBorder 0
tfTestZEqual 0
AirPrtCncr_512.mat
[ClassInfo]
ClassName TMaterial
BasedOn base.mat
[Layer0]
TextureName AirPrtCncr_512.tga
tfMipMap 1
AirPrtCncr_256.mat
[ClassInfo]
ClassName TMaterial
BasedOn base.mat
[Layer0]
TextureName AirPrtCncr_256.tga
tfMipMap 1
AirPrtCncr_128.mat
[ClassInfo]
ClassName TMaterial
BasedOn base.mat
[Layer0]
TextureName AirPrtCncr_128.tga
tfMipMap 1
AirPrtCncr_32.mat
[ClassInfo]
ClassName TMaterial
BasedOn base.mat
[Layer0]
TextureName AirPrtCncr_32.tga
ColorScale 1.0 1.0 1.0 0.7
tfMipMap 1
tfBlend 1
The four files, from _512 to _256 to _128 to _32 call successively smaller textures, for successively more distant LODs. The one to pay attention to here is the last one, AirPrtCncr_32.mat. It normally looks like the other three. I've added the "ColorScale" parameters, making the last value equal 70% opacity, and I've enabled the ability to make the texture have transparency by adding "tfBlend 1". This then results in the most distant LOD being partly see-through. If I wanted to go more aggressive, I might have set the ColorScale opacity lower, to, say, 0.6 or 0.5. But this would make for a more jarring transition for such a prominent texture as nearly white concrete. For less obtrusive runway/taxiway/parking apron textures, setting a lower opacity could be beneficial.
It may not be wise to try to set some transparency for the second most distant LOD (AirPrtCncr_128.mat) because this transition occurs pretty darned close and would stand out more strongly. But hey, one could try in some cases...
Here's the result of my little experiment. Four panels, from top to bottom, getting successively closer to the airfields. In the first two, both fields are seen at 70% opacity. In the third, the near half of the near field is now at full normal opacity, but the far half is at 70% opacity (as is the far airfield.) In the fourth panel, the near field is fully opaque, while the far field is still at 70% opacity.
The third panel is the most instructive here, because it shows the transition in opacity, making the difference most clear. But pay attention also to panel two; the lower left apron is on top of a different color land texture (orange-ish), which is clearly enough seen through the partly transparent concrete.
