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In this tutorial, Bill from Live Simple Live Free discusses the function and importance of a transit, a tool essential for surveying and construction. He emphasizes that transits are crucial for ensuring level foundations, highlighting their role in taking accurate measurements between points, such as corners of a house. The process begins with setting up the transit on a stable tripod, ensuring it remains unmoved. Bill explains that once properly set up, the transit can pivot and provide precise level readings, which are vital for various construction tasks.