In this study a novel optical trace gas sensor based on a perforated hollow waveguide (PHW) was proposed. The sensor has been given the acronym ESHOW for Environmental Sensor using Hollow Optical Waveguides. Realizations of the sensor have demonstrated rapid response time (<2s), low minimum detection limits (typically around 3 x 10-5 absorbance). Operation of the PHW technology has been demonstrated in the near-infrared (NIR) and mid0infrared (MIR) regions of the spectrum. Simulation of sensor performance provided in depth understanding of the signals and signal processing required to provide high sensitivity yet retain rapid response to gas changes. A dedicated sensor electronics and software foundation were developed during the course of the Phase II effort. Commercial applications of the sensor are ambient air and continuous emissions monitoring, industrial process control and hazardous waste site monitoring. There are numerous other applications for such a sensor including medical diagnosis and treatment, breath analysis for legal purposes, water quality assessment, combustion diagnostics, and chemical process control. The successful completion of Phase II resulted in additional funding of instrument development by the Nations Institute of Heath through a Phase I SBIR grant and a strategic teaming relationship with a commercial manufacture of medical instrumentation. …