Low traffic local roads are often comprised of a marginal gravel base course with a thin bituminous surfacing. These pavements commonly require rehabilitation at the end of their life. The economic (financial) and environmental (embodied carbon) cost of three typical pavement rehabilitation designs were estimated and objectively compared. The rehabilitation treatments included full depth granular reconstruction with new material, an insitu cementitious stabilisation of the existing pavement to form a lightly bound gravel base, and an insitu foamed bitumen stabilised existing gravel base, each with a sprayed seal surface. The full depth reconstruction with new granular materials had the highest economic and environmental costs, by a significant margin. It is recommended that stabilisation be the preferred rehabilitation option for local roads, and that pavement reconstruction using new materials only be considered when stabilisation of the existing pavement is determined to be unviable.