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There is an ongoing interest in identifying new biodegradable hydraulic fluid compositions that may be used as alternatives to mineral oil in many hydraulic applications such as mobile off-highway equipment. To date, many basestocks have been proposed including: vegetable oils, polyol esters, diesters, synthetic hydrocarbons and others. One basestock is gaining interest as alternative, biodegradable, fire-resistant hydraulic fluid; anhydrous poly(alkylene glycol) (PAG) fluids. However, the use of these fluids is not new; they are simply being rediscovered. The objective of this paper is to provide an overview of the discovery and development of anhydrous PAGs as hydraulic fluids. This discussion will include: an overview of PAG chemistry, properties and hydraulic pump performance.