We demonstrate an ultra-low light level optical modulator using a tapered nano fiber embedded in a hot rubidium vapor. The control and signal beams are co-propagating but orthogonally polarized, leading to a degenerate V-system involving coherent superpositions of Zeeman sublevels. The modulation is due primarily to the quantum Zeno effect for the signal beam induced by the control beam. For a control power of 40 nW and a signal power of 100 pW, we observe near 100% modulation. The ultra-low power level needed for the modulation is due to a combination of the Zeno effect and the extreme field localization in the evanescent field around the taper.