Locata technology is the future of indoor positioning. It solves the problems faced by traditional positioning systems, by implementing a network of terrestrially based transceivers that transmit their own GPS-like signals, at the licence-free frequency of 2.4 GHz. However, electromagnetic signals are attenuated when passing through walls and other obstructions. This paper outlines the research carried out to test the effects of some commonly used construction materials on the pseudorange of Locata’s signals. Reasons for these effects have been explored based on the properties of the tested materials. The effects of signal attenuation on the accuracy of the positioning solution have been further explored, by introducing a combination of construction materials at different locations within a network of LocataLites. This is aimed at enhancing the performance of Locata technology for indoor applications.