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I think its just a towing package for a 2WD Avalanche. This will describe it.

http://www.intellichoice.com/reports/vehicleReport/vehicle_nmb/17780/section/packages/type/used/2006/Chevrolet/Avalanche

Actually the Z66 is the Premium On-Road Suspension package, which includes electronic stability control

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11y ago
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Q: What is the z66 package on Chevy Avalanche?
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