This document describes a proposed pothole detection system project. The goals are to design a system to assist drivers in avoiding potholes by providing warnings as they approach one. It would use image analysis in MATLAB to detect potholes and convert images to digital form. The current challenges are completing the program coding. Milestones include completing a first prototype by May 2018 which involves risks in utilizing artificial intelligence and programming algorithms for image segmentation. Funding is requested to cover costs for the idea, prototyping, mentoring, trials, and manufacturing. The total estimated cost is Rs. 750000.