What's the cycle time on your compressor. The more it runs the more heat cool cycle and such, more water in the air. If it doesn't run much the air in the compressor cools and the moisture settles in the tank, which you should definitely drain daily.
I have two water seperators in series. The first one does the grunt work.
I rarely have to drain the second one. The second one is about 20 ft from the first one. If you don't have that distance I would coil some air hose to let the air cool before it gets to the second one. Although doing it that way, you should purge the line to remove trapped moisture. I have water drains around the shop to keep the lines clean.
http://www.greenvalleycompressor.co...ssors/Champion-5-HP-Air-Compressor-VR5-8.html
These guys are just down the road from me and after lots of questions, this is the one we settled on. The higher pressure and larger tank makes for a very long cycle time.
My old Campbell would constantly run when gundrill. Talk about making water.
This one runs about 1 min every 8 when wide open gundrilling. Finish spraying, it may run once everty 20 minutes.