Cases of premature pavement distress have recently occurred in Northern California. The distress has mainly been manifested in the form of cracking (alligator and longitudinal). Also, rutting, raveling, and bleeding have occurred at various locations. Field observations and laboratory tests performed by the California Department of Transportation indicated that the primary cause of this distress is moisture-induced damage (stripping). Stripping was extensive at many locations. Sections that exhibited more severe pavement deterioration showed more stripping damage. Sections that showed more severe stripping were those that received a chip seal treatment, had an asphalt concrete overlay over an existing chip seal, or were constructed with pavement reinforcing fabrics. Many core samples also revealed high air voids and high ratios of fines to asphalt. Various laboratory tests were conducted, including the moisture-induced damage test (AASHTO T283), which included the effect of lime and BA2000 antistripping additives; surface abrasion (CT 360); and density analysis and extraction tests. It was concluded that using lime in a slurry form or using a liquid antistripping agent in combination with lowering the level of air voids and reducing the ratio of fines to asphalt could minimize stripping. Also, among the tests evaluated, AASHTO T283 appears to have the best potential to identify moisture-susceptible mixes. The other tests did not appear to possess this potential.