This paper presents parts of the results from a research project sponsored by Taiwan Environmental Protection Administration (TEPA), investigating both the physical and environmental properties of asphalt mixtures using different amount of incinerator bottom ash (IBA) as fine aggregate substitution. The Marshall mix design method was used to determine the design asphalt content and evaluate the potential performance of these IBA-asphalt mixtures. Water sensitivity and wheel track rutting were also performed on these mixtures. Leachates, from both laboratory and outdoor leaching tests, were performed to measure the concentration of selected heavy metals and the level of daphnia toxicity. While with adequate Marshall stability, the IBA-asphalt mixtures were shown to have excessively high Marshall flow and excessively low VMA (voids in the mineral aggregate). The results of the wheel tracking tests also indicated that the IBA-asphalt mixtures had low rutting resistance. The results of the water sensitivity test according to procedure of AASHTO T283 method showed that the IBA-asphalt mixtures had a higher tensile strength ratio (TSR) as compared with the conventional asphalt mixtures. Considering the environmental aspects, outdoor leaching tests showed that IBA had a high level of daphnia toxicity. From an ecological perspective, IBA could be identified as hazardous waste in Taiwan. However, after being mixed with asphalt binder, the concentration of heavy metals and the levels of daphnia toxicity were significantly reduced. The leachates of 10-day flat plate leaching tests on Marshall specimens containing IBA indicated that the heavy metal were undetectable and the daphnia toxicity was ineffective. (c) 2006 Published by Elsevier B.V.