</font><font color="blue" class="small">( I think the moisture falls out of the air as it cools and if possible, you should try to accomplish this before the air enters the distribution line. )</font>
Yes it does and you should, but it would be difficult for the home user to accomplish this since the air will continue to cool as it enters the buried line outside, especially in the winter.
At the plant we run our air through a refrigeration unit to condense the majority of the moisture from the air, then to reduce the dew point to a value much lower than the lowest anticipated ambient temp we run the air through desiccant driers. This will lower the dew point to somewhere around -50 deg F. This prevents water (ice in the winter) from forming in the air lines which supply air to operate controls within the plant. Without all this expensive equipment, water will form in your underground line. /forums/images/graemlins/frown.gif
You can run whatever type of pipe you decide on with a slope away from the source of air with a "low point" drain coming off the bottom of the pipe close to where it comes back up out of the ground. The valve on this drain doesn’t need to be below the pipe. The drain line can be routed to come up above ground level with the valve installed in a convenient location. Use a smaller line (1/4") for the drain than the main pipe. I like the ball valves for air lines. The line can be blown down daily or as needed.