As drilling and completion technology advances, the trend to exploitation of gas reservoirs exhibiting ever lower permeabilities continues. This paper discusses issues associated with the identification of productive, low permeability, gas-producing formations and the successful completion and production of these reservoirs. For the purposes of this paper, a very low permeability gas reservoir is defined as a formation having an in-situ matrix permeability to gas of 0.5 mD or less. Criteria are presented for identifying economic absolute permeability cutoffs for low permeability gas-bearing formations. Very low permeability gas reservoirs are typically in a state of capillary undersaturation where the initial water (and sometimes oil) saturation is less than would be expected from conventional capillary mechanics for the pore system under consideration. These formations are commonly referred to as dehydrated or desiccated formations and have been documented on a worldwide basis. Retention of fluids (phase trapping) is discussed as one of the major mechanisms of reduced productivity, even in successfully fractured completions in these types of formations. As well, a variety of diagnostic and remedial treatment options are presented.