really nice piece, Jan. Now I would love to know more about your art pipeline. :-)
Viewing post in Outskirts - Godot Environment Demo comments
It is quite simple - terrain is 3D mesh made in blender, material uses vertex blend and paralax.
Materials in most of the scene actually uses vertex blend, only couple of props have unique textures. For lighting there are couple of spot lights instead of one sun light.
Fog is combination of distance fog and planes with fog material that uses mask and tiling noise to add movement - volumetric fog was too costly :)