This paper presents a new decision tree induction method, called co-location-based decision tree (CL-DT), to enhance the decision-making of pavement maintenance and rehabilitation strategies. The proposed algorithm utilizes the co-location characteristics of spatial attribute data in the pavement database. The paper first presented the co-location mining algorithm, including spatial attribute data selection, determination of rough candidate co-locations, determination of candidate co-locations, pruning the non-prevalent co-locations, and induction of co-location rules, and then focused on the development of the co-location decision tree (CL-DT) algorithm, which includes the non-spatial attribute data selection, co-location algorithm modeling, node merging criteria, and co-location decision tree induction. A pavement database covering four counties, which are provided by North Carolina Department of Transportation (NCDOT), is used to verify the proposed method. The experimental results demonstrated that (1) the proposed CL-DT algorithm can make a better decision, and has higher accuracy than the existing decision tree methods do; (2) the training data can be fully played roles in contribution to decision tree induction and the computational time taken for the tree growing, tree drawing and rule generation is largely decreased; (3) quantity and locations of six treatment strategies proposed by the ITRC and by CL-DT is much close for each treatment strategy.