This study is focused on the development of water-based ITO nanoparticle dispersions and ink-jet fabrication methodology of an indium tin oxide (ITO) sensor for room temperature operations. Dimensionless correlations of material-tool-process variables were used to map the printing process and several interpretational frameworks were re-examined. A reduction of the problem to the Newtonian fluid approach was applied for the sake of simplicity. The ink properties as well as the properties of the deposited layers were tested for various nanoparticles loading. High-quality films were prepared and annealed at different temperatures. The best performing material composition, process parameters and post-print treatment conditions were used for preparing the testing sensor devices. Printed specimens were exposed to toluene vapours at room temperature. Good sensitivity, fast responses and recoveries were observed in ambient air although the n-type response mechanism to toluene is influenced by moisture in air and baseline drift was observed. Sensing response inversion was observed in an oxygen and moisture-free N2 atmosphere which is explained by the charge-transfer mechanism between the adsorbent and adsorbate molecules. The sensitivity of the device was slightly better and the response was stable showing no drifts in the protective atmosphere.