This paper presents a texture-based algorithm for vector data display that is able to precisely and efficiently overlay traditional 2D vector data on a 3D multi-resolution terrain model. By the algorithm, depending on the view to the scene first, a perspective projection is created, to match the currently visible range of the terrain. Then the projection is used to generate the texture on-the-fly with the texture coordinates calculated on GPU. The quality superior to standard texture mapping can be achieved by using the view-dependent perspective projection, for improving the availability ratio of texture pixels. In addition, since the algorithm is independent of the underlying terrain geometry, it is suited to work with terrain LOD algorithms and image pyramid.