Pavement performance prediction models play an important role in pavement management systems. They can not only predict pavement future conditions, but also provide valuable information to subsystems of pavement management systems, such as design, maintenance, and evaluation subsystems. This paper first presents various methods of developing the prediction models. After interviewing domestic highway agencies, six criteria for evaluating the development methodologies are decided. Then, the model of pavement family curves is assessed most suitable for Taiwan highway agencies. The process of model development is presented. The possible parameters used to present pavement performance and relevant factors are also given in this paper. Through the case study, it is found that the recommended method is quite promising.