Base materials that meet specifications are getting more difficult to get in many regions of the United States. As a result, higher quality materials have to be hauled long distances. This act would significantly increase the costs associated with roadway construction and subsequent maintenance and rehabilitation. Low quality or out-of-specification materials are usually available from local sources. If through appropriate treatment of the materials or/and structural design, the optimum use of local materials can be permitted, the construction can be accelerated and significant monetary benefits can be realized Most of the pavement design guidelines are based on the assumption that aggregates are important ingredients of pavement structure. However, availability of good quality aggregates may be a constraint in some locations. To transport good quality aggregates from long distance may not be economically feasible. Due to the excessive investment and maintenance cost, new methods of design had to be sought and new building materials are introduced. Some researchers tried with soil, which is available everywhere. The engineering properties of soil were modified using certain treatment. At the same time various waste products are created by several industrial plants. These waste products could be used in the road construction projects after following certain treatment procedure. By treating natural soil or fly-ash, or by addition of certain materials to it, new road construction Each highway was divided into three sections with different materials in the subbase and base layers, such as fine lateritic soil, fine lateritic soil stabilized with lime, and a mixture of fine lateritic soil and crushed rock. The compaction characteristics were evaluated in laboratory tests. From the time the segments were constructed (in 1998 and 2000) until 2001, the stress-strain behavior of the paving structures was evaluated by in situ tests, such as the plate-bearing, Benkelman beam, and falling weight deflect to meter tests. From the results, conclusions were drawn about which of the chosen materials showed the best performance in mechanical behavior.