I have not done it myself, but the Motorhome Magazine Dinghy Towing Guide for 2018 gives the procedure/requirements. I did not see the Colorado even listed in the 2017 guide.
From the 2018 guide:
Only flat tow 4WD vehicles with a two-speed transfer case that have a Neutral position and a 4WD Low setting. Negative battery cable must be disconnected. Keep ignition in ACC to prevent steering column from locking. See Owners Manual.
https://my.chevrolet.com/learn/2018/Colorado
Only dinghy tow four-wheel-drive
vehicles that have an N (Neutral)
and a Four-Wheel Drive Low (4 ( n )
setting.
{ Warning
Shifting a four-wheel-drive
vehicle's transfer case into
N (Neutral) can cause the vehicle
to roll even if the transmission is
in P (Park). You or others could
be injured. Set the parking brake
before shifting the transfer case
to N (Neutral).
To dinghy tow:
1. Position the vehicle being
towed behind the tow vehicle,
facing forward and on a level
surface.
2. Securely attach the vehicle
being towed to the tow vehicle.
3. Apply the parking brake and
start the engine.
4. Shift the transfer case to
N (Neutral). See โShifting into
N (Neutral)โ under Four-Wheel
Drive 0 231. Check that the
vehicle is in N (Neutral) by
shifting the transmission to
R (Reverse) and then to D
(Drive). There should be no
movement of the vehicle while
shifting.
5. Turn the engine off.
Caution
Failure to disconnect the negative
battery cable or to have it contact
the terminals can cause damage
to the vehicle.
6. Disconnect the negative
battery cable at the battery and
secure the nut and bolt. Cover
the negative battery post with a
non-conductive material to
prevent any contact with the
negative battery terminal.
7. Shift the transmission to
P (Park).
Caution
If the steering column is locked,
vehicle damage may occur.
8. Move the steering wheel to
make sure the steering column
is unlocked.
9. With a foot on the brake pedal,
release the parking brake.
Keep the ignition key in the
towed vehicle in ACC/
ACCESSORY to prevent the
steering column from locking.
"Second star to the right and straight on 'til morning." Captain Kirk in Star Trek VI 'The Undiscovered Country'
2007 39K Winnebago Journey "The Enterprise"
Jeep Cherokee Sport 4x4