Since the AASHO road test of 1962, tremendous efforts have been devote
d to improve the methodologies of pavement performance prediction. The
successful implementation of the Network Optimization System (NOS) in
the Arizona Department of Transportation (ADOT), in the 1980s, repres
ented an advancement in the prediction methodology by using Markov-pro
cess-based transition-probability matrices (TPMs) to define the transi
tion process of pavement conditions. This paper addresses some of the
inadequacies of the original NOS prediction model. Two approaches were
used to evaluate the transition probability matrices. First, the curr
ent pavement performance data base was used to develop new TPMs. Secon
d, the Chapman-Kolmogorov method was used to examine the logical exten
sion of the transition probability matrices from a single step to long
-term pavement behavior. As a result, the concept of pavement probabil
istic behavior curves (PBC) was established. The newly generated TPMs
were modified with accessibility rules to improve the prediction of pa
vement performance. More importantly, it was demonstrated that Markovi
an prediction satisfactorily models actual pavement behavior. The deve
lopments presented in this paper improve the reliability of the microc
omputer-based NOS.