"An intercooler is between stages of compression in the compressor. These are the finned pipes between pistons on two stage compressors. They drop air temperature some but not enough to remove moisture.
An aftercooler can be before or after the tank, but is always after and separate from the compressor."
Not true, my INTERCOOLER (not aftercooler) drops out a lot of water, all depends on design. A primary function of an intercooler is to lower air temp, making air more dense before it hits the next stage in a compressor, which lowers operating cost.
DIY compressor Intercooler…
Intercooler between the first and second stage, consisting of an Allison DB-1290 (24.0 x 19.0 x 1.5 Overall size), with two coalescent filters (all 1” piping); cooler is mounted in front of the belt guard. The intercooler cools the air from the first stage (approx 275° F ) to ambient room temperature, resulting in roughly 15-20% more efficiency as the air is denser entering the second stage, and roughly a 50% moisture drop out. Two coalescent filters where installed just below the Allison cooler, the second small filter was installed in case the main water filter’s automatic drain fails, as water entering the second stage could cause severe damage; on a low humidity day (37% for summer in NYC is low), 10 minutes running (timed), approx. 1/2 cup of water/oil drops out; on a high humidity day over 1 cup will drop out in that time. Allison cooler picked up on Ebay for $40.00 delivered (I was lucky); most of the filters/valve/gauges ect. purchased on Ebay.
Shows DB1290 intercooler and auto drains...
http://s852.photobucket.com/user/pcmeiners/media/DSC_00640001.jpg.html
Used as an aftercooler off the second stage, this unit would drop the temperature of the air entering the receiver to ambeint temperature, dropping most of the moisture out. Again, some sort of automatic water removal would be needed, as extended compressor use with a cooler such as this would produce far more water than normal. Approx water drop out on a humid summer day with extended use (NYC in July), such as car painting about 1 gallon.
http://www.makcotransmissionparts.com/DB-1290.html