Air Compressor Dryer and Drain

[Schmokie]

Alright guys here goes, I have looked over the net and found a pretty compact and simple design for a compressor dryer. But where I am stumped is in the area of getting rid of the water. Most applications want you to route the discharge tube from the pump itself to the dryer then into the tank. Then they want you to buy a auto drain system to get rid of the water. My question is why into the tank when you can go into a air water separator and then into the tank. This way no water ever gets into the tank at all and as the water level raises, you can go over to the separator and drain it yourself.

Give me some input if you could.

Here's a pic of the set up.

 

[Skysurfer]

Agreed, that picture seems wrong. I ran the first stage compressed air through an air-to-air cooler with an auto drain. It then goes through the second stage of the compressor and exits to a refrigerated cooler (with auto drain) before entering the tank. The tank has an auto drain as well. Finally, the air leaving the tank goes through a water separator and a coalescing filter before it connects to the hose reel.

I find water as far as the separator bowl but it seems dry at the end of the hose.