Harry, that's exactly what it does. The tank is not a bladder tank, but a galvanized tank. The air fills the top of the tank and pushes the water level down until a float valve opens and bleeds off excess air. That way a constant level "bubble" of pressurized air is maintained at the top of the tank. The float/bleed valve is down about 14" from the top of my tank and also contains the pressure gage. I've had to replace the pressure gage, but the float/air bleed function has continued to work perfectly for 12 years.