One approach which is easy to implement and used in quite high end games (e.g. EverQuest and World of Warcraft) is to put "s-bends" in the transitiona (doorways, canyons, etc.) between areas. E.g. large buildings, dungeons, and inns are designed so that there's no line of sight from inside to outside, making for very simple occlusion (if you're in a building, you don't need to render ANYTHING outside).
Options for indoor and outdoor areas.
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