A transmit power control technique within a wireless communication system includes adjusting a transmit power used by a picocell base station unit based upon a position of the picocell within a macrocell. When a picocell base station unit is located relatively close to a macrocell base station or center of the macrocell, the transmit power of the picocell base station unit is increased to avoid downlink interference from the macrocell base station for mobile stations communicating within the picocell. When a picocell base station unit is located relatively close to an edge of a macrocell, the transmit power of the picocell base station is decreased to avoid interference caused by the picocell base station unit for mobile stations communicating within the macrocell in the vicinity of the picocell. In a disclosed example determined downlink interference levels provide an indication of the position of the picocell within the macrocell and provide an indication of how to automatically adjust the transmit power of the picocell base station unit.